Canada -  Victoria

The Victoria hotel market has been improving steadily since recovery got underway in 2013. The market-wide RevPAR increased 10.4% to $98.30 in 2015. The resurgence of American travel to Canada with the downward slide in the Loonie, combined with a surge in the number of travellers from China, supported this growth. With the strength of the market, the per-room value increased by 10.1% to $119,113 in 2015, which is close to the values supported prior to the recession, and also to our projection of $120,750 made in the previous HVI.

According to the Conference Board of Canada, Victoria will realize stronger GDP growth in 2016 than in any year since 2008; the city’s real GDP is projected to grow 2.3% that year. The market outlook for Victoria is thus positive for 2016. Although the market-wide occupancy is projected to decrease slightly as a result of new supply entering the market, with a Holiday Inn Express and Suites and a DoubleTree by Hilton, the RevPAR is nonetheless projected to increase at a strong rate of 8.3% to $106.42 with the help of gains in ADR.

With the expected improvement in operating performance, the per-room value for the Victoria lodging market is projected to increase strongly and steadily over the coming years with growth of 15.1% and 7.3% in 2016 and 2017, respectively. By 2019, the Victoria lodging market is projected to have the fifth-highest per-room value in the country at $150,923, up from eleventh highest in 2015; this represents the largest projected upward shift in ranking among the markets studied.

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%

Victoria RevPAR Change

Victoria RevPAR

Year RevPAR
2006 84.94
2007 91.44
2008 87.64
2009 78.66
2010 76.15
2011 75.30
2012 73.62
2013 80.76
2014 88.98
2015 98.30
2016 106.42
2017 (f) 112.89
2018 (f) 116.30
2019 (f) 119.82

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
CRussell@hvs.com
  • +1 604 988-9743 (w)