The latest price of a room in Toronto’s Xcarets hotel chain is going to increase by as much as $200 million, a new report says.
Xcaret, the world’s second largest hotel chain, has posted a 22% increase in the price of its Toronto hotels in the past year, and expects to double that number in the coming years.
The average price of one night in a Toronto hotel has risen by $2,700 in the last two years, and the company has committed to double or triple that rate by 2023, CEO James McVean told the Financial Post in a phone interview.
For example, the average price in Xcarett’s new Toronto hotel for a one-night stay is $1,400, while the average for the average stay in the average hotel in the United Kingdom in 2017 was $1.20.
A $1-a-night hotel room in the U.K. cost £1,085 in 2016, or about $2.10, according to the website RateTravel.com.
McVean said the XcareT model is the “most cost-effective, most affordable way to get a good night’s stay in a hotel, in a city, anywhere.”
McWane’s Toronto hotel, the third-largest in the city, will also see a jump in price from its current $200 a night rate to $300.
If you’re planning on staying at Xcareted hotels, it’s important to know that Xcaretten’s hotels in Toronto and Vancouver are not the same as hotels that exist in the rest of Canada, McVane said.
“There are some differences between the Canadian market and the rest, and they’re quite large,” he said.
“They’re going to affect what the average person is going be paying for a room.”
The Toronto hotel’s average room rate will jump by nearly $4,400 by 2027, with the average rate for the Vancouver hotel at $3,100.
In both cities, Xcarents hotels are also being built to meet new standards set by the government of Canada.
Canada’s Residential Tenancies and Leasing Act allows for the purchase of a maximum of one-bedroom suites in all of the city’s housing markets.
But the Act does not require hotels to sell their units in the same market, so in Toronto, there are only two hotels on the market — the $1 million Toronto-based Yonge-Dundas and the $2 million Millennium Place.
The Canadian Mortgage and Housing Corp., which is managing the Xcott’s debt, has said it will sell the remaining suites at market value to pay down the debt.
It will then sell them to private buyers.
The average cost of a one bedroom suite in Toronto will jump from $2 and $2 per night in 2017 to $3 and $3.50 in 2023.
The average price for a two bedroom suite is now $3 per night, or $4.60.
There are also changes to the way rental rates are calculated in Toronto.
Under the new rules, a $200-per-night room in a downtown hotel is not taxed at the same rate as a $400-per, or even $1 a night, room at a luxury hotel.
That means that hotels in downtown Toronto will be able to charge much more for the same room.
The tax on a room stays $50 at the end of the month, and is paid into the rental portfolio of the property owner, the hotel operator or the provincial government.
Rental rates in Vancouver are also rising, with hotels in that city seeing an average increase of 10%.
The Canadian Association of Realtors (CAR) estimates that the average rental rate for a single-family home in Toronto is now just over $700 per month, with condos in the GTA at $1 and $1 per night.
While the average Vancouver condo rental rate is about $800 per month.
This article has been updated to reflect the increase in prices.