Kelowna Gateway Twin-Hotel Development: A $29M Hotel Investment Opportunity on BC's Premier Highway Corridor

Kelowna Gateway Twin-Hotel Development: A $29M Hotel Investment Opportunity on BC’s Premier Highway Corridor

June 22, 2026
3:24 am

Private Investment · Confidential

Kelowna Gateway
Twin-Hotel Development

5.5-Acre Highway Site · First Nations Land Lease · Joint-Venture Equity Raise · Kelowna, BC

5.5 ac

Highway-frontage parcel

180

Keys (2 × 90-room hotels)

~86 yrs

Remaining on 99-yr lease

$250

Kelowna market ADR (CAD)

Key highlights

Dual-brand program

Full-service flag paired with an executive / extended-stay property under one major brand family on the same parcel.

Highway visibility

High-traffic corridor frontage delivers organic guest capture without relying solely on brand demand or OTA bookings.

Dual entitlement path

Already-approved fallback: 128-room hotel + two commercial buildings (retail + office) — de-risks entitlement timeline.

Long-dated site control

~86 years remaining on lease with a further 25-year extension option already available — total potential tenure 110+ years.

Revenue potential (estimated)

50%

$8.2M CAD

70%

$11.5M CAD

100%

$16.4M CAD

Modeled from $250/night ADR across 180 keys. Formal projections pending underwriting.

Capital stack

Equity sought (cash)

$8.5M CAD

Range under discussion

$8–9M CAD

Bank financing unlocked

$16–20M CAD

In-kind land position

~$6.05M CAD

Est. total capitalization

~$24.5–29M CAD

Brand & franchise economics

$75–90K

USD initiation fee per property (major-brand benchmark)

Ongoing royalty on room revenue

3–4%

Marketing fee on total revenue

Indicative terms modeled on a Hyatt-tier brand. To be confirmed per franchise agreement.

Estimated payback · structure

2–3 yrs

Preliminary payback estimate — pending formal underwriting

Deal structure

New Canadian holding company to be formed

Lease rights & shares transferred into the holdco

Open to JV partnership or full position buyout

This widget is for discussion purposes only and does not constitute an offer to sell or solicitation to buy any security or interest. All figures are preliminary estimates, unverified, and subject to formal appraisal and underwriting. Consult independent legal, tax, and financial advisors before proceeding. Confidential — not for further distribution.