Pacific Reach and Dilawri Group of Companies have acquired the 263-room The Ritz-Carlton, Toronto from Cadillac Fairview.

“Beyond being one of the most celebrated hotels in the country, The Ritz-Carlton, Toronto represents the immense potential we see in the city — not only as a key business hub, but as a vibrant, world-class destination,” Dilawri co-founder Kap Dilawri said in an email exchange with RENX that also included Pacific Reach founder and chief executive officer Azim Jamal.

“Our interest in the hotel reflects our confidence in both the strength of Canada’s hospitality industry and Toronto’s role as a central gathering place for Canadians and global travellers alike.”

Dilawri and Jamal declined to reveal the purchase price, though Green Street News reported it as $300 million.

CBRE marketed the downtown property at 181 Wellington St. W. and the company’s Luke Scheer and Mark Sparrow led the way in brokering the deal. Dilawri described the process as “smooth and collaborative.”

The hotel

The Ritz-Carlton, Toronto opened in 2011 after being developed by Cadillac Fairview, Graywood Developments and The Ritz-Carlton Hotel Company at a cost of about US$300 million.

The 53-storey, approximately 700,000-square-foot building comprises 20 floors featuring 263 luxury rooms, with the upper 33 floors dedicated to condominium units in the private Ritz-Carlton Residences. It also includes dining establishments, a spa, a fitness centre and meeting and wedding facilities.

Cadillac Fairview took full ownership of The Ritz-Carlton, Toronto in 2018 after acquiring the 60 per cent share it didn’t already own. It didn’t respond to RENX’s interview request.

The partnership

Vancouver-based Pacific Reach and Toronto-headquartered Dilawri were equal partners in the acquisition. Pacific Reach is the asset manager and will work closely with Dilawri to further elevate the luxury hotel, while Marriott International will continue to manage it under The Ritz-Carlton brand.

“This partnership is a natural evolution of the long-standing relationship between our families,” Jamal said. “We are united by shared values — a commitment to excellence, a long-term vision and a passion for hospitality and elevated design.” 

The Ritz-Carlton, Toronto is set to undergo upgrades to its spa and wellness facilities, common areas and conference spaces, according to Jamal.

The purchasers

Pacific Reach is a vertically integrated multi-strategy investment firm with investments in real estate, capital markets and alternatives. It has acquired, developed and managed hotel, multifamily and commercial properties throughout North America.

The other hotels in its portfolio are all in British Columbia: Hilton Vancouver Downtown; Hotel Belmont Downtown Vancouver; Radisson Vancouver Airport; Rosewood Hotel Georgia in Vancouver; Holiday Inn Express & Suites in Langley; and Sheraton Vancouver Guildford in Surrey. 

“Pacific Reach is excited to continue its journey in actively owning premier hospitality properties as one of our investment strategies and advancing our asset management business,” Jamal said. “With a strong foundation established by iconic assets like the Rosewood Hotel Georgia, this new chapter represents an opportunity to elevate our efforts even further within the Toronto market. 

“The Ritz-Carlton, Toronto is the epitome of luxury and a truly irreplaceable hotel, and we are excited to champion a new chapter.”

Privately owned and operated Dilawri is Canada’s largest automotive retail group, with 83 franchised dealerships in Canada and the United States. It has expanded its portfolio with strategic interests in real estate and a range of diversified holdings.

“While Dilawri’s core business remains rooted in the automotive industry, this acquisition marks a notable milestone for our investment division and strengthens our portfolio,” Dilawri said.