Canada -  Saskatoon

SASKATOON is the largest city in the province of Saskatchewan. The lodging market is driven by an array of sectors, including agriculture, mining, and biotechnology, as well as government and healthcare demand.

In 2016, the economy suffered a second year of negative growth, but this trend is projected to end in 2017 with the strengthening of oil prices. The Conference Board of Canada is projecting GDP growth of 3.6% for the city in 2017 on the basis of growth in both goods and services.

In 2016, the market-wide RevPAR fell 15% from the 2015 level. The room supply increased by 5% that year even as room demand fell. Consequently, the market-wide occupancy and ADR both declined. In the 2016 HVI report, the per-room value of the Saskatoon market was projected to decrease by 18.8%. The actual year-end performance was similar to what had been anticipated: the per-room value actually decreased by 18.4% to $112,433. The market ranked fifteenth for per-room value in 2016.

Even with the revival of the economy, the Saskatoon lodging market is projected to remain soft through 2017. The market is still faced with absorbing new supply, which will slow the market’s ability to respond to the improvement in market conditions. The market-wide RevPAR is projected at $75 for 2017, which reflects a drop of 5% from the 2016 level. This decrease in RevPAR is due to losses in ADR, which have continued even as demand has picked up. In this context, the projected per-room value for 2017, at $109,431, is down 2.7% from the level recorded in 2016.

With the expectation of growth in demand, RevPAR growth is expected to finally resume in 2018. In the climate of positive GDP growth, the market is projected to see a 4.0% increase in RevPAR, and the per-room value is projected to increase to $113,841. Nevertheless, the per-room value is projected to once again decrease in 2019, to a level of $110,952, and an additional decrease, albeit much more modest, is also projected for 2020. The addition of more new supply is largely responsible for this negative growth. The projected per-room value for 2020, at $110,304, puts the market in seventeenth position among the 19 major markets in Canada.

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%

Saskatoon RevPAR Change

Saskatoon RevPAR

Year RevPAR
2005 61.77
2006 65.42
2007 79.46
2008 92.76
2009 95.29
2010 99.66
2011 97.63
2012 103.63
2013 106.16
2014 106.76
2015 92.65
2016 78.87
2017 75.03
2018 (f) 78.05
2019 (f) 75.82
2020 (f) 75.63

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
[email protected]
  • +1 604 988-9743 (w)