TORONTO — There’s good news on the horizon for the Canadian lodging industry. RevPAR and ADR are expected to grow in 2015, and 2016 will yield even better results, according to the newly released HVS report, “2015 Canadian Hotel Valuation Index.”
Recent economic uncertainty and lower oil prices have created lean times for some areas of the country. “At the national level, however, overall lodging market performance is projected to be strong for 2015 and 2016. This is due largely to the projected increase in tourism — domestic and international — brought on by the weaker Canadian dollar, the strengthening economic conditions in Canada and the United States and a more competitive global banking environment,” the report reads. Canada’s GDP is expected to grow by 1.7 per cent and 2.4-per-cent more in 2016.
RevPAR is forecast to grow 4.2 per cent in 2015, ending at $93, and HVS predicts RevPAR will reach new heights in 2016, growing to a record-high of $96. ADR is also expected to grow 4.5 per cent in 2015, resulting in a national ADR of $143.63.
Meanwhile, national room supply is projected to increase by 0.9 per cent, or 3,980 rooms, in 2015, causing a decrease in the national occupancy rate. In 2016, this figure is expected to increase by a further 1.7 per cent, or 7,566 rooms.
To read the complete report visit hvs.com.