In the first quarter of 2017, the Canadian lodging market continues to fire on all cylinders with RevPAR growth outpacing 2016 growth. Alberta and Newfoundland are charting positive growth for the first time in three years!
Traditional hotel development in ski resort towns has slowed nearly to a halt, with barriers like limited land and high costs putting pressure on new builds. But hotel demand and performance are on the rise and the “barriers” may not be so imposing.
Iceland has seen explosive tourism growth since 2010. Summer's midnight sun, Winter's Northern Lights and year-round natural beauty have kept the tourists coming, resulting in strong hotel performance and a booming sharing economy.
The Niagara Falls, ON, region is seeing another record-breaking year in RevPAR growth. The rise in occupancy and average daily rate is expected to continue with the persistence of the weak Canadian dollar and the rise in US/international travellers.
Glasgow's hosting of international events has increased its global exposure and led to the development of a cosmopolitan hotel pipeline, which is in itself a sign of greater investor confidence in Scotland's second city.
This is a time of contrasts in the Canadian Lodging Market. Resource based markets are suffering due to low oil prices, however leisure markets, most particularly in Luxury and Resort markets are benefiting from demand induced by the low-oil Loonie.
Private Student Housing has emerged as a mainstream global asset class. While the USA and the UK are currently well-established as markets for student housing investments, the European market remains relatively unexploited.
Phoenix’s growth in 2015 reflects the hopes of hotel developers and owners in the market, as performance closes in on pre-recession levels.
HVS Canada is pleased to announce the publication of the 2013 Canadian Hotel Valuation Index.
The Current Status of Hotel Development Activity and Construction Costs in Canada