Sunray Group and the Town of Wasaga Beach have executed a letter of intent for a four-acre, two-phased development beside the world’s longest freshwater beach in the Ontario tourist haven. The company also hopes to ink additional agreements with the town for other proposed developments.
Sunray Group president and chief operating officer Kenny Gibson told RENX a confidentiality agreement prevented him from revealing the price of the four-acre tract of land purchased from the town.
The first phase of the project, situated on approximately 1.5 acres across from Beach Area One at 1 North St. and Beach Drive, is planned to include a full-service hotel with 120 to 150 guest rooms, a beachfront restaurant and bar, and event spaces.
Gibson said Sunray Group typically wouldn’t build a hotel in what’s widely considered a summer-only location. It was swayed by the enthusiasm of Mayor Brian Smith and council members have for developing a major brand hotel in a town where accommodations are largely provided by smaller independent motels and cabins.
Wasaga Beach has about 25,000 residents, and is located along the southern tip of Georgian Bay. It’s famed sand beach extends for about 14 kilometres, with much of that length accessible to the public.
“The vision that the current regime has there pretty much accounts for redeveloping and re-imaging the whole beachfront and the whole town of Wasaga,” Gibson said. “The vision is to create a year-round destination rather than just being a summer destination, and that’s what got us excited about this.”
A recently built community centre is already hosting concerts and events to attract people year-round, which Gibson said is another positive factor for Sunray Group.
Construction could start next summer
Sunray Group plans to start construction as early as next summer, as the remaining required agreements are expected to be worked out in the next month.
Existing old and vacant beachfront buildings on the site will be demolished by the town over the winter, ahead of construction.
The hotel will be owned and operated by Sunray Group. It’s not yet decided under which brand the hotel will operate.
Sunray Group, which is owned by the Gupta family, owns and operates more than 70 hotels across Canada and has won awards from Marriott Bonvoy, IHG Hotels & Resorts, Hilton and Choice Hotels.
Approximately 2.5 acres will be dedicated to a joint venture between Sunray Group and the town for a residential and commercial development and a public square, which is to comprise the second phase.
“We think it’s probably two years to build the hotel from the time that we start with planning, which will be in the first part of next year,” Gibson said. “Then just as soon as we get the hotel open, we’ll start on the residential component.”
Current plans are for about 290 residential units in three four- to six-storey buildings totalling approximately 180,000 square feet of gross space.
There will also be 38,000 square feet of space for retail and food and beverage outlets.
“The beachfront needs to be activated with regard to food and beverage and more quality retail, rather than mom and pop,” Gibson said.
Sunray Group will create the public square that will be adjacent to the residences and maintained by the town.
“They’re talking about having a stage where there are concert events and entertainment events that go on in the square,” Gibson noted.
Retirement home could follow in Wasaga Beach
Sunray Group is also in preliminary discussions with the town to acquire additional land to build and operate an assisted living retirement home.
MyLife Retirement, which was founded and is led by physician and Gupta family member Dr. Sunjay Gupta, is owned and operated by Sunray Group. It operates five Ontario assisted living retirement homes in Penetanguishene, Orillia, Fort Erie, Chatham and St. Thomas. The proposed Wasaga Beach facility would be part of the division.
“That’s a big part of our future growth within Sunray,” Gibson said. “The town has a significant amount of land that they’re looking to monetize at some point and one of the things that came up in our conversation is that Wasaga is a hotbed for retirees. That got our interest.”
Gibson expects Sunray Group will be able to get an agreement with the town for the additional land to accommodate this. It is proposing an assisted living retirement home with about 100 units.
Separately, Gibson anticipates closing on the acquisitions of two more assisted living retirement homes late this year or early in 2025.
More to come from Sunray Group
“We’re still bullish on hospitality in Canada and we’ll continue to look at opportunities that come our way,” Gibson said. “We have some properties under contract that I can’t disclose for confidentiality reasons, but we expect to acquire three or four more properties in the first quarter of next year.”
The business, economic and financing fundamentals are all good for the hospitality sector, according to Gibson.
“That allows us to really focus on more strategic purchases. We’ve shifted our focus a little bit from just secondary and tertiary markets to more strategic assets in the core of Canadian cities.”
Sunray Group acquired Hampton Inn & Suites by Hilton Calgary Airport, Sheraton Ottawa Hotel, and Fairfield Inn & Suites by Marriott and Quality Inn & Suites Bay Front in Sault Ste. Marie, Ont. during the first two months of this year.
The company opened a Holiday Inn Express-branded hotel in Strathroy, Ont. last year that Gibson said has performed well.
Sunray Group is close to breaking ground on a focused service hotel with approximately 120 guest rooms in Brantford, Ont.
“We also have a number of projects that we’re in the process of getting permitted or site plan-approved for new development,” Gibson said.
