Canada -  Niagara Falls

Overview:

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.

Valuation Trends and Predictions:

Niagara Falls Canada
Previous Year +17% (5 of 19) +9% (12 of 19)
Growth in 2017 +10% (2 of 19) +5% (12 of 19)
Growth in next 4 years -100% (9 of 19) -100% (2 of 19)

Change In Value For Market:

Niagara Falls RevPar % Change

For more information, please contact:

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