1) Canada’s Population Boom is Driving Investment

Canada’s population crossed 40M this year, with an annual population growth rate of 2.7% and growing over 1M people last year.

It’s not a sudden baby boom that is causing this growth - 96% of the growth is due to immigration!

This population growth is also driving investment opportunities.

Take a look at the growth of the housing market:

If you thought the US housing market was overheating, Canada’s housing prices are up 142% on a real basis since 2005!

This growth has not gone unnoticed by investors such as Blackstone.

Blackstone has CA$27B invested in Canadian assets and has opened an office in Canada to invest in logistics, office, and residential.

Here are some key highlights driving Canada investment:

• Population growing 5 times faster than the US

• Leads the G7 for most educated population

• Housing shortage and affordability challenges

Key Insight→

Follow the growth. Blackstone follows macro trends to sniff out new opportunities. Canada’s population growth and strong fundamentals are driving new investment in the country.

2) Hotel Branded Residences

Hotel brands have historically offered branded residences within their hotel properties to drive hotel growth.

Now some of your favorite hospitality brands are following the demand and creating standalone branded residences.

If you can’t get enough of your Marriot and Hilton stays, now you can live there full time, complete with amenities like concierge services, private lounges, and restaurants.

Here are some examples of new or upcoming standalone hotel branded residences:

• Marriot: The Lucan in London

• Four Seasons: New private residences to open in Las Vegas

• Hilton: Waldorf Astoria development in Pompano Beach, FL

• Mandarin Oriental: Beverly Hills Residences

Last week we highlighted luxury branded residences and the same thinking applies to why hotel brands would develop residential. If you’ve created brand equity over years and decades with travelers and customers, why not leverage that brand into creating branded residential properties.

Key Insight →

Hotels are extending hospitality to homes. Hotels have leaned into the demand for branded residences and the ability to own and live in homes that provide the same comforts and amenities as the hotel experience.

3) $300B in Dry Powder is Ready to Pounce on Distressed Assets

Many in the real estate community have been highly critical of the federal reserve, with rate hikes causing a tremendous slowdown in the housing market.

Just this week, the Mortgage Bankers Association (MBA), National Association of Realtors (NAR), and National Association of Hom Builders (NAHB) urged the fed to reconsider rate hikes. The industry warns that further rate hikes could further slow the housing market and send the economy into a recession and hard landing.

Many investors are anticipating further market distress, with an estimated $300B in dry powder sitting on the sidelines. $116B is estimated to be allocated to opportunistic investments and $120B allocated to value-add opportunities.

Key Insight →

Investors are waiting to capitalize on distress. The real estate community has been critical of the fed’s rate hikes, fearing further distress and a hard landing. Well-capitalized investors are ready to pounce on this distress with an estimated $300B in dry powder.