FOR SALE - DTZ

FOR SALETraveller’s Inn City Center Hotel1961 Douglas and 722 & 726 Discovery Street, Victoria BCREDUCED PRICE!COURT ORDERED SALE!OpportunityExcellent opportunity to acquire a four storey full servicehotel comprised of 81 units. The property is ideallylocated close to the downtown core and offers anoutdoor swimming pool and licensed patio, banquetrooms, restaurant, lounge, and pub (leased toSoprano’s).Price $7,500,000 $7,200,000Rick Pettingerrick.pettinger@dtzbarnicke.comAmanda Crowderamanda.crowder@dtzbarnicke.comGriffin Lewisgriffin.lewis@dtzbarnicke.comTel. 250 382 3400 www.dtzbarnicke.com

FOR SALETraveller’s Inn City CenterOverviewDTZ Barnicke is pleased to present the Courtordered listing of the “Traveller’s Inn City Center”, afour storey full service 81 unit hotel constructed in1961 and ideally located within walking distance ofVictoria’s downtown core. The property benefitsfrom it’s exposure to Douglas Street and it’s closeproximity to a vast array of amenities, services andrecreational activities. The subject lands are “L”shaped and consist of 43,566 square feet at 1961Douglas Street, in addition to 14,400 square feet ofadjacent land at 722 and 726 Discovery Street(currently used for parking).The existing facilities include an outdoor swimmingpool (with a licensed pool patio), restaurant, lounge,banquet rooms, pub, and business centre. Severalof the guest rooms have recently been renovatedand 17 rooms contain kitchenettes. All roomsprovide TV, air conditioning, work desks, in-roomcoffee makers, and voicemail.LocationTraveller’s Inn City Center is ideally situated on thenorthern periphery of Victoria’s downtown core, justone block west from the Save-On Foods MemorialCentre.The area is convenient and popular for tourists as itis within walking distance or just a short drive (5minutes) to many of Victoria’s major attractionsincluding the Inner Harbour, Royal BC Museum,Beacon Hill Park, Chinatown, the VictoriaConference Centre, in addition to a wide variety ofshops, restaurants and pubs.The property also benefits from excellent frontageon Douglas Street (120 feet) and very convenientaccess to two of Victoria’s primary thoroughfares,Highway #1 (Douglas Street) and Highway 17(Blanshard Street).Licensed PatioLocation MapTel. 250 382 3400 www.dtzbarnicke.com

FOR SALETraveller’s Inn City CenterVictoriaVictoria is located on the southern tip of Vancouver Island, on British Columbia’s West Coast. It is the vacationcapital of Canada and renowned internationally as a premier tourist destination, contributing approximately onebillion dollars in annual tourism revenue to the local economy. The Greater Victoria area is made up of 13municipalities and is home to more than 350,000 residents. For people of all ages, it is a community of choicefor its temperate climate, natural beauty, enviable lifestyle, superior urban amenities and abundant economicopportunities, making it an exceptionally attractive place in which to live, work and invest. Excellent air andferry transportation links provide an easy commute to or from the densely populated Greater Vancouver andSeattle/Tacoma regions. From a real estate perspective, the global economic downturn impacted the localinvestment market, but fortunately it was to a lesser extent than many of the larger urban centres acrossCanada and the United States. The local economy has been relatively insulated from the broader recession,due in part to Victoria’s large public service employment base and diverse economic drivers.Tourism MarketVictoria is a major tourism destination seeing more than 3.65 million visitors a year who inject more than onebillion dollars into the local economy. Tourism in the Capital Region hit a record high in 2007 generating $1.23billion, but in 2008 it began to experience the affects of the economic downturn with the City’s tourism revenuedeclining to $1.1 billion. Until that time, the local tourism market remained resilient with overseas and interprovincialtraveling largely offsetting any decline in American tourists.In the first half of 2009, tourism suffered further as the fallout from the global economic downturn rippledthrough the industry. Despite the busiest year ever in the cruise ship sector with 215 ships making stops inVictoria, this year the City has seen a decline in the US, overseas and domestic markets. Nonetheless, earlyreports suggest that it has been a year of unpredictable results for the City’s tourism industry with a number ofoperators sales down, but many others have managed to stay on par with last year through aggressive pricingand packaging.Looking ahead, Greater Victoria’s tourism industry is expected to remain stable for the remainder of 2009(generating just under $1 billion by year end), with performance levels improving in the latter part of 2010.Tel. 250 382 3400 www.dtzbarnicke.com

FOR SALETraveller’s Inn City CenterImprovementsThe property is improved with a 4 storey 49,183 square foot hotel. Originallyconstructed in 1961, the building has undergone several renovations andadditions over the years. The hotel offers 81 guest rooms approved for rentplus four additional rentable rooms. Please note that the property has morerooms than are authorized by the City of Victoria. Furnishings varydepending on the unit, but most rooms offer a king size bed or two doublebeds, four-fixture washroom, bedside table with lamp, pedestal table withchairs, work desk and credenza. Most rooms contain a large armoire with a27” television, direct dial telephone, and coffee maker. The hotel alsobenefits from 17 guest rooms with kitchenettes. Common areas include thehotel’s front reception area together with meeting rooms, business centre,and the outdoor heated pool with deck. The front reception/lobby wasrecently renovated with several upgrades.Food and beverage services within the hotel are provided by KKBL VenturesLtd. and consist of a poolside bar and grill that seats 45 people indoors and100 outdoors (40 seats are primary liquor license with off-sales). Thepoolside lounge seats 50 people and the banquet rooms (3 meeting rooms)are approximately 2000 square feet in size with a total combined capacity of150 people. Soprano’s Sports Bar (seating capacity of 275 people), has aprimary liquor license and is located on the southeast end of the hotel.Tenant Operating Agreements (leases) are not registered on title and areutilizing liquor licences assigned to the property. Copies of the OperatingAgreements are available upon request.The building’s foundation is reinforced concrete with concrete and woodframe with stucco or painted concrete block exterior walls. The roof is flatwith built-up tar and gravel and is currently being replaced at a cost ofapproximately $250,000. The building is serviced by a single elevator andoffers air conditioning throughout by way of a central cooling unit. The mainelectrical service is 1600 amps and heating is provided by way of two naturalgas fired boilers installed in 2003. The subject property appears to be ingood condition overall. There is some deferred maintenance from recentneglect, however several repairs are in progress at the date of preparationof this information and once complete will result in a fully functional and wellmaintained facility.View from Outdoor PatioExposure on Douglas StreetFront ReceptionRestaurant with view of poolFinancial PerformanceLimited Financial Statements and historical occupancy records are availablefrom the Receiver-Manager. A former manager has stated that as recently astwo years ago the hotel was operating at about 90% occupancy in thesummer and 60% in the winter, with nightly rates ranging from $60 to $140.Daily and monthly reports of the property since appointment of Receiver-Manager are available upon request.Typical guest room/washroomOld vs. New WashroomsCity Center hallwayTel. 250 382 3400 www.dtzbarnicke.com