Should you buy a Phase 2 property in Whistler before / during a renovation? Here’s what to consider.
A handful of Whistler’s hotel-managed Phase 2 properties have renovations on the horizon. The Westin, Whistler Village Inn & Suites, and Pan Pacific Whistler Village Centre are among those with plans in the works. If you’re shopping for a Phase 2 property right now, there’s a good chance the one you’re looking at is about to get a significant upgrade. Here’s how to think about it.
First, a quick note on how hotels handle renovations
Not every hotel approaches this the same way. Some redirect a portion of owners’ rental income into a reserve fund over several years, building up the renovation budget gradually and avoiding any surprise payments. Others issue a special levy, requiring owners to contribute a lump sum when the time comes. And some do a combination of both. Understanding which approach your hotel is taking is an important part of evaluating the investment.
What you should know going in
Buying before a renovation isn’t without trade-offs. During the pre-renovation and construction period, rental income is typically lower than normal. If the hotel is building up a reserve fund, a portion of your income will be redirected rather than distributed to you. If the hotel uses a special levy model, you may face a lump sum contribution when construction begins. Either way, the short-term income picture isn’t what it’ll be post-renovation.
There’s also the disruption factor. Units may be temporarily offline during construction, and the overall guest experience at the hotel may be affected while work is underway.
The advantages — why it can be a smart entry point
Despite the short-term headwinds, buying before a renovation has real upside.
Purchase prices tend to reflect the current, pre-renovation condition of the property as well as the lower projected income during that period. Once the work is done, both the resale value and the nightly rental rates typically increase. Phase 2 properties in Whistler don’t always appreciate at the same pace as residential real estate, so a renovation cycle is one of the clearest drivers of value uplift available to this type of owner.
Post-renovation, revenue projections are meaningfully stronger. Modernized rooms attract higher nightly rates and better occupancy, which flows through to owner returns. Historically, well-run Phase 2 properties in Whistler return around 3 to 5% after base expenses, and a freshly renovated hotel is well positioned to hit that range, or even exceed it.
Perhaps the most underrated advantage is simply knowing. There are other hotels in Whistler that are dated and overdue for an update, but don’t have anything announced or planned yet. Buying into one of those is a different kind of gamble. With the hotels mentioned above, you know what’s coming, you know the timeline, and you can factor it into your decision. That transparency has real value.
The bottom line
Buying a Phase 2 property before a renovation isn’t the right move for everyone. If you need strong returns from day one or can’t absorb a lump sum levy, the timing may not work for you. But if you have a medium to long term outlook and are looking for an entry point into Whistler’s resort property market, buying ahead of a renovation at a pre-renovation price, with the upside of a modernized asset ahead of you, is worth taking seriously.
As always, make sure you understand exactly how your hotel is funding the renovation before you buy. The details matter.
Interested in Phase 2 properties in Whistler? Get in touch to talk through the options. birte@brealtywhistler.com | +1 604 907 0244
