Canada -  Halifax-Dartmouth

Overview:

The Halifax-Dartmouth hotel market benefits from non-energy exports, off-shore energy and the manufacturing industry. Moreover, the combination of good weather, the low Loonie, and cheaper gas helped to bring more American and domestic tourists to Halifax in 2016 relative to 2015.

According to RBC, Nova Scotia’s economy grew by 0.9% in 2015, and it is expected to grow at a comparable rate of 1.2% in 2016 and 1.1% in 2017. Halifax-Dartmouth in particular has been in a period of increased economic output since 2014, and the Conference Board of Canada projects a strong GDP growth of 2.8% for the city in 2016. The increase in economic activity is largely due to the start of work on the $26-billion federal shipbuilding contract at the Halifax Shipyard, which is driving the growth in the manufacturing sector.

In 2015, the Halifax-Dartmouth hotel market attained a RevPAR of $85.06, which reflects an increase of 4.6% over the previous year. Given the strong demand growth taking place in the market on top of a small decline in supply, RevPAR growth of 9.0% is projected for 2016. The room supply in the Halifax-Dartmouth market is expected to decrease 0.7% in 2016 with the closure of the 139-room Days Inn Dartmouth and the 84-room Dartmouth Oceanview Hotel in 2015.

As a result of this positive environment, the per-room value for Halifax increased 5.8% to $106,141 in 2015, which is higher than the 4.2% growth that we projected in our previous HVI report. The market value is projected to grow at a moderate pace in the coming years—an increase of 14.8% is projected for 2016. With this growth, Halifax-Dartmouth is expected to rank thirteenth for per-room value in 2019, up from fourteenth in 2015.

Valuation Trends and Predictions:

Halifax-Dartmouth Canada
Previous Year +15% (8 of 19) +9% (12 of 19)
Growth in 2017 +4% (13 of 19) +5% (12 of 19)
Growth in next 3 years +8% (14 of 19) +8% (15 of 19)

Change In Value For Market:

Halifax-Dartmouth RevPAR % Change

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
mrosszell@hvs.com
  • +1 416 686-2260 (w)