Vancouver - Success Stories

The Opus Hotel, Vancouver... Projections verses Actual... Pretty Close

The Project

HVS Canada completed an Economic Feasibility Study and Summary Appraisal Report for a proposed boutique hotel to be located in downtown Vancouver, British Columbia.

• The proposed hotel was to have 97 rooms and specialized dining. The name of the hotel was The OPUS
• The location was in a trendy part of downtown Vancouver called Yaletown, about as far away as you can get from the downtown financial core
• The client really wanted to know if a non branded, uniquely designed hotel (bathrooms on the outside wall), wildly furnished hotel would make it in Vancouver

The HVS Assignment

HVS was first hired to do the Economic Feasibility Study and Summary Appraisal in 1998. At that time the hotel was going to be strata titled (condominium) property. We later valued the proposed hotel as a normal operating boutique hotel. And we just appraised it again this year.

The Result

The 97 room OPUS hotel opened in 2003. This was one of the worst years in Canadian hotel history, because we were hit by SARS and forest fires. The hotel ran 73% at a $197 average rate in its first year. The citywide average in 2003 was 64% at $144. In 2004 the hotel ran 81% at $207, and in 2005 it ran 83% at $227. This is compared to 69% at $146 for the market in 2004 and 72% at $147 for the market in 2005.

This is what HVS projected back in 1998, almost 10 years ago, as compared to actual:

We are currently appraising another boutique hotel in Montreal for the same developer.