Canada -  Toronto Airport West

The TORONTO AIRPORT WEST market relies on demand from the airport, conventions, and local commercial activity.

In 2016, the Toronto Airport West market realized a robust 12% increase in RevPAR. The market-wide ADR increased at a very strong rate of 8%, mainly as a result of hoteliers being more selective in taking on higher-rated demand. Hotel operators have shifted their focus away from low-rated leisure and airline-crew demand in favour of corporate accounts that are showing little rate resistance.

In the 2016 HVI report, the per-room value of the Toronto Airport West market was projected to increase by 18.2% in 2016. The performance of the market was actually stronger than what had been expected, and the per-room value increased by 20.0% to $117,679. This put the market in fourteenth position for per-room value among the 19 major markets in the country that year.

The Toronto Airport West market is projected to see another strong year in 2017, driven by an increase in demand from large events, such as the Invictus Games and the NHL’s Centennial Classic Games, combined with the growth in passenger traffic at Pearson International Airport, which saw the passenger count increase by 7.5% in the first eight months of 2017 relative to the comparable period in 2016. Given the robust increase in demand and the growth in ADR, the market-wide RevPAR is projected to increase by 11.0% this year.

On the supply side, the new opening of the Courtyard Toronto Mississauga/West added 120 rooms to the market, and the Travelodge Toronto Airport was converted to a DoubleTree, bringing nine new rooms to the market in the process. The room count of the Holiday Inn Toronto International Airport also increased by five rooms following a renovation. The new hotels in the pipeline include the Element Toronto Airport, the Holiday Inn Express Toronto Airport, the Residence Inn Toronto Mississauga, the Hyatt Place Toronto Airport.

Given the strong market fundamentals that are in place, the per-room value of the Toronto Airport West market is projected to increase by another 10.8% in 2017 to $130,396. For 2020, the per-room value is projected to reach $159,015, placing the market in seventh position among the 19 major lodging markets in Canada, up seven positions from the 2016 ranking.

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%

Toronto Airport West RevPAR Change

Toronto Airport West RevPAR

Year RevPAR
2005 74.47
2006 75.36
2007 77.20
2008 76.63
2009 62.45
2010 68.39
2011 69.52
2012 69.72
2013 71.38
2014 76.31
2015 83.39
2016 92.41
2017 102.57
2018 (f) 113.64
2019 (f) 119.06
2020 (f) 123.44

For more information, please contact:

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