This week, Vancouver-based investment firm Pacific Reach and Toronto-based Dilawri Group announced that they had acquired the Ritz-Carlton in downtown Toronto, which they called "one of Canada's most iconic and prestigious hotels."
Located at 181 Wellington Street W between David Pecaut Square and Simcoe Park, about one block away from CN Tower, the Ritz-Carlton Toronto was originally developed by Graywood and Cadillac Fairview, the real estate subsidiary of the Ontario Teachers' Pension Plan.
The Ritz-Carlton occupies the first 20 floors of the 53-storey tower and is home to 263 luxury hotel suites. The 33 floors above the hotel is home to private Ritz-Carlton Residences. The hotel opened in February 2011 and has gone on to win numerous accolades, including the Forbes Five Star Award and CAA/AAA Five Diamond Award.
In 2018, Cadillac Fairview announced that it had acquired full ownership interest of the hotel, buying out Graywood for an undisclosed price.
According to both Altus Group and CoStar transaction data, Cadillac Fairview sold the hotel through Simcoe Wellington Residences Inc. to RZ JV Nominee Ltd. on July 24 for $247,654,000, which translates to $941,650 per key. However, one industry source told STOREYS the price was $1,043,000 per key, which translates to $274,309,000. STOREYS could not independently verify the higher figure.
According to the press release, Pacific Reach will take on the role of asset manager and will work with Dilawri to "elevate an already exceptional luxury hotel." Planned improvements include updates to the spa, wellness amenities, common areas, and conference spaces. Marriott International will continue to manage the hotel under The Ritz-Carlton brand.
The lobby of the Ritz-Carlton Toronto. / Ritz-Carlton
"We are thrilled to acquire The Ritz-Carlton, Toronto and leverage our years of experience owning and operating luxury hospitality assets, including the Rosewood Hotel Georgia, to build on the exceptional reputation of The Ritz-Carlton, Toronto," said Pacific Reach Founder & CEO Azim Jamal. "This partnership with Dilawri represents our shared vision of excellence, as we take steps to further enrich the guest experience and continue the Ritz-Carlton's legacy as one of the most prestigious luxury hotels in Canada."
For Pacific Reach, the acquisition adds to its already-extensive list of hospitality assets. In British Columbia, the company also owns the Hilton Vancouver Downtown, Rosewood Hotel Georgia, Radisson Vancouver Airport, and Hotel Belmont Downtown Vancouver, among several other hotels and restaurants. The Ritz-Carlton Toronto appears to be Pacific Reach's first hospitality asset outside of BC, according to the company's website.
Dilawri Group, on the other hand, is best known as being one of Canada's largest automotive groups, with a portfolio of 83 dealerships across the country. Like other automotive groups, it has also expanded its portfolio in recent years and become more involved in real estate. It acquired a significant stake in Automotive Properties REIT (TSX: APR.UN) in 2023.
"The Ritz-Carlton, Toronto is a true luxury landmark in the heart of downtown," added Dilawri Group Co-Founder Kap Dilawri. "We are proud to help steward this iconic property and remain committed to honouring its legacy while ensuring it continues to thrive as a cornerstone of Toronto's luxury and hospitality landscape. This acquisition also marks an exciting milestone in our dedicated investment division, as we expand our portfolio focused on real estate and strategic, diversified holdings."
The sale of the Ritz-Carlton comes a few months after the Bisha Hotel — located a five-minute walk away from the Ritz-Carlton — was acquired by Sunray Group for $91 million.
