One of Toronto’s first 5-star hotels changes hands, ‘enhancements’ on the way

A hotel that many say is Toronto’s first true five-star hotel (although not its first ultra-lux property) has recently changed hands.

While specifics about the sale price and future upgrades have not yet been disclosed, the new owners suggest that some “enhancements” are on the horizon.

Late last month, Vancouver-based real estate and capital group Pacific Reach and Toronto-based automotive company Dilawri Group of Companies announced that they acquired the Ritz-Carlton, Toronto.

Previously owned by Cadillac Fairview, the luxury hotel and residence opened to great fanfare on Wellington Street in the city’s downtown core in early 2011. The 53-storey property boasts over 260 hotel rooms, over 150 condominium units, a spa, a fitness centre, restaurants and more. 

In a news release, Pacific Reach and Dilawri said the acquisition represents the new owners’ “shared vision for the property’s bright future.” 

Pacific Reach will take on the role of asset manager, while Dilawri will work to “elevate an already exceptional luxury hotel.”

Marriott International will continue to manage the hotel under The Ritz-Carlton brand, according to the news release. 

“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 Azim Jamal, CEO and founder of Pacific Reach, in a statement. 

“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.”

While the sale amount was not disclosed, commercial real estate platform CoStar says its data suggests that the two companies paid approximately $247.7 million (or $941,650 per room) for the property. 

In the news release, the companies express confidence in Toronto’s role as a hub for travellers seeking luxury, cultural experiences and business opportunities. 

While the hotel is a high-end property with room rates starting at $850 a night, a recent report from real estate company REMAX says the hotel sector is thriving in Canada–especially as more people choose to travel within the country due to tariffs and ongoing friction with the U.S. 

REMAX notes that an Altus Group report found that the hotel sector was the top-performing asset class in commercial real estate in 2024, with a 48 per cent increase in growth year-over-year.

The REMAX report said a number of hotel brands are expanding, including Hilton, Marriott and Hyatt, with the Hyatt planning to open 23 new hotels by 2026. It also noted that Toronto is particularly attractive, with the entire GTA area seeing $552 million in transactions last year–an increase of 173 per cent over 2023. 

“The upswing reinforces Toronto’s status as a top destination for leisure and business travel and a major hub for investors to diversify their portfolios,” the report reads. 

The news release says planned enhancements to the property will include updates to the spa and wellness amenities, common areas, and conferencing spaces. 

Photos from the Ritz-Carlton, Toronto’s official Facebook page