Canada -  Toronto Airport West

Overview:

The Toronto Airport West market relies on demand from the airport, conventions, and local commercial activity.

In 2015, the Toronto Airport West market realized a robust 9.2% increase in RevPAR. Toronto Pearson International Airport, the largest and busiest airport in Canada, had nearly 2.5 million additional passengers that year, which increased passenger traffic by 6.4% over the 2014 level. With no change in supply, room demand swelled as a result of the Pan Am Games in the summer, the low Canadian dollar, and compression in the Toronto Downtown market.

In the 2015 HVI report, the per-room value of the Toronto Airport West market was projected to increase by 13.8%. The performance of the market was actually stronger than expected, and the per-room value increased by 16.1% to $98,100. This put the market in sixteenth 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 year of strong growth in 2016 with the weak Loonie and low oil prices creating a push for travel. In this environment, the market-wide RevPAR is projected to increase at a very strong rate of 12.3% this year.

Over the next four years, the market-wide room supply is expected to increase by 7.2%. The new hotels in the pipeline include the Element Toronto Airport, the Residence Inn Toronto Mississauga, the Courtyard Toronto Mississauga, the Hyatt Place Mississauga Centre, and the Residence Inn Toronto Mississauga North. Nonetheless, demand growth is expected to keep pace with the supply increases, allowing the new rooms to be readily absorbed into the market.

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 18.2% in 2016 to $115,985. For 2019, the per-room value is projected to reach $135,307, placing the market in eleventh position among the 19 major lodging markets in Canada.

Valuation Trends and Predictions:

Toronto Airport West Canada
Previous Year +18% (4 of 19) +9% (12 of 19)
Growth in 2017 +7% (7 of 19) +5% (12 of 19)
Growth in next 4 years -100% (14 of 19) -100% (2 of 19)

Change In Value For Market:

Toronto Airport West RevPar % Change

For more information, please contact:

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