Aprairie dream has sparked development of a $20-million boutique hotel in Victoria that will give comfort-minded investors a green refuge when they need it most.

“People who live on the Island or in Vancouver take for granted what we as Albertans look at with envy: Green growth, warm weather,” says Michael Hawitt of James Bay Investments, developer of the hotel.

“Many of us want to come out and spend a week or two weeks, any time we want, but there are few options.”

The 80-suite Oswego, slated for construction in 2005, increases those options. Instead of booking into a luxury hotel suite, guests can own their own units and have them rented out when not in residence.

Images courtesy of James Bay Investments
Boutique hotels such as the Oswego, above, offer the type of amenities found in larger luxury hotels, such as a welcoming lounge area for residents and guests, below.

Hawitt says ownership offers the best of two worlds: Maintenance-free recreational real estate and the allure of the pampered boutique hotel experience. The suites are selling for $149,000 for 400-sq.-ft. studios up to $450,000 for 800-sq.-ft., two-bedroom units, each fully furnished and with a kitchen.

There have been so many expressions of interest from people in Alberta, Victoria and the northwest United States that Hawitt expects the hotel to be largely sold out July 14, the day sales open and investors can select suites at the sales centre on the corner of Kingston and Oswego Streets.

The project will have a West Coast look and feel: From the brick-and-glass exterior, to terraced gardens, to the generous windows in individual suites designed to flood the space with natural light and allow residents to enjoy the vista of the city or James Bay.

Buyers will have unrestricted use of their suites for 150 days of the year – but when they aren’t there, their suites go into a managed rental pool. Owners also have access to resort operator Intrawest’s exchange program, so they can swap their Victoria suite for a short-term stay at an Intrawest resort or a room on a cruise ship.



Owners can use their suites like a second home, cooking in their own kitchen, inviting friends in for drinks in the lounge – or simply enjoy the amenities of a boutique hotel, says Oswego marketing consultant James Askew, president of RareEarth Project Marketing.

“It’s ideal for the recreational user who wants the downtown feel, restaurants, the arts, entertainment, and to be close to the water,” says Askew. Within a five-minute walk, guests will find art galleries, theatres, museums and the Inner Harbour. The Oswego project will interest people who want a low-maintenance, well- serviced alternative to a cabin or cottage; snowbirds who want to escape the bitter cold of inland winters; and investors who want to cash in on Victoria’s hot real estate market or boutique hotels’ economic performance, says Askew.

For the first group, “boutique hotel service means your unit will be ready to go when you arrive. It’s easy to maintain. You can even have your refrigerator stocked before you arrive. You can go to restaurants, enjoy culture and amenities close at hand,” says Askew.

The boutique hotel trend started in England about 30 years ago as a reaction to the major hotel chains’ cookie-cutter look and impersonal service.

Boutique hotels are small, generally no larger than 100 rooms, and feature chic décor and personalized service – really personalized service. It’s not unusual to find espresso machines in suites, libraries filled with books, videos and compact discs, and dogwalking services.

Personalized service is a must for boutique hotels, says Askew. Staff “get to know your name and personal taste and needs. They are going to look after you; they know your dog’s name and where you like to golf.”

Once the domain of sophisticated travellers, boutique hotels have been opened to a new class of consumers by the ‘dot.comming’ of the world. These customers are used to customizing – they want to order their burgers, and their hotel sojourns, just the way they want.

The Oswego allows travellers to have the joys of boutique hotels and the benefits of ownership, too.

Oswego will also attract people who want to escape the cold, says Hawitt, who describes himself as “an Albertan through and through.”

With WestJet flights now available on short-term notice and your own hotel suite to escape to, “if you know a cold snap is coming, you can jump on the plane.” But Askew and Hawitt also expect some suites will be bought by investors who want to cash in on Victoria’s hot real estate market.

Buyers of similar recreational real estate in hot tourist destinations such as Whistler have seen their investments appreciate even before the projects have opened.

Not only is the real estate market hot in Victoria, Hawitt points out, but the hotel market is good, too.

“Victoria has 67-per-cent occupancy rates, the best in Canada,” says Askew.

In addition, Condé Nast magazine has rated the city as the top city to visit in the Americas and Vancouver Island as the No. 1 destination.

“It’s very safe, it’s easy to get here, there’s lots of recreational opportunities and cultural amenities,” adds Askew.

Economic returns ensure boutique hotels are not a flash in the pan, according to Jones Lang LaSalle Hotels, the world’s largest hotel investment banking service.

U.S. boutique hotels have reached occupancy levels of the luxury hotel segment, and have outperformed that segment economically.

The Oswego development, says Askew, is modelled on the Kimpton Group’s Hotel Monaco chain – more than 30 European-styled hotels that offer a standard menu of amenities, but flavoured by each hotel’s individual environment and clientele.

Oswego will offer the amenities expected in a fine hotel: Concierge service, a fitness room, outdoor hot tub, small conference facility, bistro restaurant and room service.

Hawitt and project partner Gail Davies, a real estate lawyer, have prior experience at developing joint retail/ residential projects, most recently a 130,000-sq.-ft. retail/residential complex in Squamish.

Hawitt is particularly proud of Oswego’s residents’ meeting space. The Pacific Great Room will operate like the residents’ lounge standard in European hotels.

The huge room is divided into seating zones, where residents can head to curl up with a good book, find a partner for a game of chess or invite friends for a drink at the bar.

To enhance the ambiance, an evening wine tasting is planned as an end-of-day ritual for guests. Oswego has also hired Tourism British Columbia chair Mike Duggan, who has experience managing the posh Pan Pacific Lodge Whistler, one of the Top 10 North American ski resort hotels.

Duggan is also managing partner of industry association Boutique Hotels of B.C.

(Sharon Adams can be reached at sharon@businessedge.ca)