Yates Block
Victoria, BC

Heritage Hotel Renovation

Area: 24,000sf

Value: $25M

Project Summary

The Yates Block is a landmark heritage-designated hotel building in downtown Victoria. The property dates back to 1882 with several additions to the building occurring between 1892 and 1896. Neev’s client planned to repurpose the building to rental or condo uses.

Our Role

Neev acted as Development Consultant to investigate the financial feasibility of various development scenarios for the building including maintaining its commercial and hotel uses or converting the property to residential rental or condo uses. The scenarios also included the investigation of adding two new floors to the building to increase its revenue potential. 

As well as conducting financial analysis, our role included discussions with hotel operators to understand their revenue projections and operating assumptions, risks and legal requirements for the project to determine ongoing cash flow projections.

• Financial analysis for hotel and residential development scenarios
• Review of design layouts to maximize leasable areas
• Validation of revenue and costs, financing assumptions including heritage grants and heritage tax incentive program  
• Negotiations on Letter of Intent with potential hotel operator
• Market analysis on cap rates, rental rates and ADR rates

The project ultimately moved forward to provide new residential and updated retail and restaurant space. The project is currently in the permitting phase.