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 2016, the market achieved a record-breaking RevPAR of $104, up 10% from the 2015 level, mainly because the low Loonie contributed to an increase in domestic and international traffic to this destination. At the same time, the only increase in supply was the expansion at the Embassy Suites Niagara Falls Fallsview, which added 40 rooms to the market.

In the 2016 HVI report, the per-room value of the Niagara Falls lodging market was projected to increase by 16.6%, and the actual growth was roughly in line with our projection. This moved the market to twelfth place among the 19 major Canadian lodging markets in the sample in 2016.

In 2017, the market is expected to have another good year because the weak Canadian dollar and friendly visa policies are inducing strong increases in international leisure demand even though the rainy summer negatively affected leisure demand in Niagara Falls. The market-wide RevPAR is projected to improve to $110, up 3.0% from the 2016 level, supported by increases in both demand and ADR. The market-wide per-room value is forecast at $123,812 for 2017, reflecting a 3.0% increase over 2016, which is a much more modest rate of growth relative to what the market achieved in 2016. No new supply has been confirmed for this market, but a number of large projects are percolating in the pipeline.

Hotel values in this market are projected to remain on an upward trajectory because the Niagara region is becoming much more of a year-round destination. By 2020, the per-room value for the Niagara Falls lodging market is projected to reach $140,866, allowing the market to remain in twelfth position among the 19 major lodging markets in Canada in that year.

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
2005 75.88
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 107.17
2017 110.39
2018 (f) 115.35
2019 (f) 120.72
2020 (f) 125.59

For more information, please contact:

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