Canada -  Niagara Falls

The Niagara Falls lodging market is highly driven by tourism activities. The market welcomes approximately 12 million tourists annually. The lower Canadian dollar and the healthier US economy are giving a boost to this lodging market.

In 2015, the market achieved a record-breaking RevPAR of $97.39, up 14.6% from the 2014 level. At the same time, the market saw a 0.9% decrease in the room supply because the 185-room Comfort Inn Clifton Hill was taken off the market in November 2015 to allow for the construction of a new recreation complex.

In the 2015 HVI report, the per-room value of the Niagara Falls lodging market was projected to increase by 16.1%; however, the record-breaking performance in fact pushed the per-room value up by 19.4% to $103,304, moving the market up one position point to fifteenth place among the 19 major Canadian lodging markets in the sample.

In 2016, the market is expected to have another record-breaking year because the weak Canadian dollar and low gas prices are inducing strong increases in US and domestic leisure demand. The market-wide RevPAR is projected to improve to $109.03, up 12.0% from the 2015 level, supported by increases in both occupancy and ADR. The market-wide per-room value is forecast at $120,495 for 2016—a notable 16.6% increase over 2015.

Over the next four years, the room supply is expected to increase by 3.6%. Despite the increase in rooms, hotel values in this market are projected to continue on an upward trajectory because the Niagara region is becoming much more of a year-round destination. By 2019, the per-room value for the Niagara Falls lodging market is projected to reach $138,193, putting the market in ninth position among the 19 major lodging markets in Canada, up six positions from 2015.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Niagara Falls RevPAR Change

Niagara Falls RevPAR

Year RevPAR
2006 79.23
2007 79.31
2008 77.95
2009 72.43
2010 73.14
2011 73.14
2012 77.06
2013 77.98
2014 84.97
2015 97.39
2016 109.03
2017 (f) 116.73
2018 (f) 121.58
2019 (f) 123.86

For more information, please contact:

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