Canada -  Montreal Airport

Overview:

The Montreal Airport market is driven mainly by airport demand, but local pharmaceutical, aerospace, telecommunication, and information technology companies also generate significant demand for area hotels.

In 2015, the Montreal Airport market achieved a record-breaking RevPAR of $83.20, up 6.3% from 2014. The market experienced an increase in tourism activity because of the weak Canadian dollar and low gas prices.

As these conditions are expected to persist, the market is expected to realize another year of growth in 2016. The RevPAR is projected to improve to $89.30, reflecting growth of 7.3% over the year before. Demand is expected to grow 3.0%, supported by the temporary closure of Downtown Montreal’s 982-room Fairmont Queen Elizabeth in June 2016, which will create compression in the downtown market to the benefit of the hotels in the airport area. There is also no new supply anticipated for the Montreal Airport market.

In 2017, a good year is expected for the Greater Montreal Area. A strong convention year is on the books, and the celebrations of Montreal’s 375th anniversary and Expo 17 are slated to take place, bringing a wave of additional visitors. In addition, Montreal will host the World Short Track Speed Skating Championships in 2018.

In the previous HVI report, the Montreal Airport market was projected to see a 6.8% increase in the per-room value. Given the strong performance of the market, however, the per-room value for the market actually increased by 10.9%, reaching $83,143.

Overall, the Montreal Airport market is projected to sustain healthy increases in RevPAR from 2016 to 2019. Against this backdrop, the per-room value for the market is projected to increase 8.7% in 2017 to $102,256, finally breaking the $100,000-per-room barrier. The Montreal Airport market is projected to remain in eighteenth place for per-room value among all the major markets in Canada in 2019, just above New Brunswick.

Valuation Trends and Predictions:

Montreal Airport Canada
Previous Year +13% (9 of 19) +9% (12 of 19)
Growth in 2017 +9% (3 of 19) +5% (12 of 19)
Growth in next 3 years +12% (11 of 19) +8% (15 of 19)

Change In Value For Market:

Montreal Airport RevPAR % Change

For more information, please contact:

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