$41.5 million deal likely biggest hotel sale in Kelowna’s history

Kamloops-based Mundi Hotel Enterprises has made what is likely the most expensive hotel purchase in Kelowna’s history, paying $41.5 million for the Best Western Plus Hotel on Highway 97.

The 176-room hotel, near Leckie Road, was bought by Mundi as of May 1 this year. Since then, 128 rooms have been renovated while 48 others were renovated a couple of years ago, owner Ron Mundi told iNFOnews.ca.

The nearby Kanata Hotel, which has 190 rooms, sold last year for what the realtor described as the second highest price ever paid for a hotel in BC outside the Lower Mainland.

That sale price has yet to be disclosed but the Kanata was assessed by BC Assessment last year at $17 million. The Best Western was assessed at $20.9 million, including $13.9 million for the land.

While the Best Western wasn’t advertised as being for sale, the nearby 135-room Ramada Hotel is on the market for $32 million.

READ MORE: Kelowna’s Ramada Hotel for sale for $32 million

“We looked at that property,” Mundi said. “While we haven’t looked at a number yet, the Best Western was more attractive to us. The reason for that is, the property is fully renovated and the land is almost five acres. We have the potential to develop something on a portion of the land. That’s the reason we bought the Best Western.”

He can’t talk about expansion plans just yet but does have an architect working on it.

Mundi has been in the hotel business for more than 25 years. He owns the Coast Hotel and Convention Centre in Kamloops and is building the 121-room Four Points by Sheraton Hotel in Penticton that he hopes to have open around the end of June.

His company has more than a dozen hotels and apartments in B.C. and Alberta, including the Holiday Inn Express, Riverland Inn and Hyatt Place in Kamloops and the Coast Hotel in Oliver.

READ MORE: Why almost every hotel in Okanagan, Kamloops is worth more than Kelowna's Ramada

Mundi sees great potential for hotels in the Okanagan as visitation rates are now back to the pre-pandemic levels of 2019.

But he wants to do more.

“Penticton and Kelowna are really busy in the summer but the winter is slow in Penticton,” Mundi said. “We’re trying to work with the city and the convention centre on how we can bring in more convention business. That’s our goal.

“With the Coast Kamloops, we have a 32,000-square-foot convention centre. When the conventions hit, the hotel is going to be busy. The restaurant is going to be busy. Taxis are going to be busy. Shops are going to be busy. It’s affecting the whole community.”

As for the Best Western, the 97 Street Pub is running but Mundi is still looking for the right opportunity to reopen the restaurant, hopefully within the next six months.

To contact a reporter for this story, email Rob Munro or call 250-808-0143 or email the editor. You can also submitphotos, videos or news tips to the newsroom and be entered to win a monthly prize draw.

We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above.