Bruce Constantineau
Sun

The 434-room Delta Pinnacle Hotel in downtown Vancouver no longer exists.

The West Hastings property switched hotel brands this week and became the Marriott Pinnacle — a move that’s expected to boost occupancy and push room rates higher by as much as 22 per cent, sales and marketing director Stephen Peters said Friday.

“This allows us to move up another notch [in the market],” he said in an interview. “It would have been more difficult to do that at Delta because we were already about as high as we could go [in that chain].”

The $75-million, strata-title hotel opened as a Delta product three and a half years ago but Peters said it needs to move upmarket so it can attract more international guests and charge higher room rates.

The 38 Delta hotels across Canada belong to the Fairmont Hotels & Resorts group. In the company’s annual report, Fairmont hotels are described as “luxury” properties while Delta properties are considered “first class.”

The average daily room rate for a Delta hotel last year was $85.23 — 33-per-cent lower than the average rate of $127.41 for a Fairmont hotel.

“Fairmont is a four-star brand and Delta is a three-star brand,” said Vancouver hotel industry consultant Angus Wilkinson. “The Pinnacle was built at a price that doesn’t justify the lower room rate a three-star brand attracts. Marriott is definitely a four-star brand and this move should bring the room rate up.”

Peters said the Pinnacle should have an occupancy rate of about 70 per cent this year, with room rates averaging anywhere from $145 to $150. Under the Marriott banner, he feels the hotel can boost occupancy to the 75-per-cent range and expects room rates to increase from 15 to 22 per cent.

Peters said U.S.-based Marriott International Inc. is one of the strongest hotel companies in the world, with more than 2,600 properties and 14 different hotel brands in 67 countries, along with one of the industry’s biggest central reservations systems.

“Delta’s strength is in Canada and it does a great job in the Canadian market,” he said. “But a brand of 35 to 40 hotels really can’t stand up against a brand of 2,600 and all the infrastructure that supports that.”

Peters said the Pinnacle should attract more international guests as a Marriott hotel from the U.S., Europe and Asia.

© Copyright  2003 Vancouver Sun

Sun

Sun

Clare Ogilvie
Province

WHISTLER — Winning the 2010 Winter Olympics is already having an impact on real estate here.

Phones that have been quiet recently as buyers waited to find out who would host the Games are suddenly ringing again.

“We have had quite a few quiet months but the day after [we won] the Olympics we noticed our telephones ringing a lot more,” said real-estate agent Maggi Thornhill of Windermere Sea to Sky Real Estate.

But Thornhill said it is unlikely that prices will go up now because there are already quite a number of properties on the market.

Intrawest’s time-share property At Nature’s Door looks on to the Dave Murray ski run on Whistler, the site of the Olympic downhill.

“A lot of people are selecting [the period] that is going to give you the pick for the Olympic year for the Olympic week,” said Intrawest marketing director Ross McCredie.

“A lot . . . have already been sold.”

A one-tenth time-share has risen in price from $284,900 to $314,000 since the first phase of the deluxe homes went on sale last year.

Realtors are predicting more sales in Whistler, Pemberton and Squamish.

“I think we may find some people who want to sell their homes because the decision has been made,” said Michael d’Artois of Remax.

“I think they’ll find there will not be a change in values as a result of this but the increased interest will certainly bring more buyers into the market.

“And the timing is right as it is at the beginning of the busy season between July and December.

“This will spark a little more interest.”

Tenants are worried that Whistler’s winning the contest to host the Games will encourage landlords to put up rents.

“I am concerned because there are a few landlords out there who honestly believe the opportunity is there to basically just pillage any tenants that they have,” said Chris

Quinlan, a tenant and owner of local coffee house Behind the Grind.

He said the Whistler Chamber of Commerce and other organizations are working to educate landlords to combat this type of problem.

Vancouver‘s Larco Investments Ltd. manages several village properties.

“We anticipate the Olympics will strengthen the market,” said Larco’s Jonathan Lazar.

“We will stay competitive with our rates.”

He said concerns over tenants being kicked out are unfounded.

© Copyright  2003 The Province

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CMHC REDUCES HOMEOWNER MORTGAGE LOAN INSURANCE PREMIUMS Canada Mortgage and Housing Corporation (CMHC) is pleased to announce reductions in homeowner mortgage loan insurance premiums by 15%, effective July 14, 2003 Over the years, CMHC mortgage insurance products have responded to the changing needs of Canadians. CMHC introduced innovations such aspurchasing a home with just 5 per cent down, financing renovations at the time of purchase and most recently the opportunity to refinance up to 90 per cent of the equity in the home, to provide homeowners with greater choice and home financing flexibilities. The premium for mortgage loan insurance is based on the amount of the Loan, in relation to the value of the home. The premium may be paid in cash or added to the mortgage. The following are the new premiums:

Loan Amount as a % of value of the home   Premium on total Loan Prior to July 14, 2003   Premium on total Loan Effective July 14, 2003   Up to and including 75% 0.75% 0.65% Up to and including 80% 1.25% 1.00% Up to and including 85% 2.00% 1.75% Up to and including 90% 2.50% 2.00% Up to and including 95% 3.75% 3.25%

Please note that application fees are unchanged. A news release regarding this announcement is available on www.cmhc.ca This information is intended to help your clients and your business, however, should you not wish to receive anymore of these updates please respond kindly with an email; [email protected]