Canada -  Victoria

The VICTORIA hotel market has been improving steadily since a recovery got underway in 2013. The market-wide RevPAR increased by 11% to $108 in 2016. 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. In 2016, Victoria had its highest-performing year for hotel occupancy and average rate since 2008. With the strength of the market, the per-room value increased by 16.7% to $139,056 in 2016, which is close to the values supported prior to the recession.

According to the Conference Board of Canada, Victoria’s economic growth is expected to moderate but remain healthy; the GDP is projected to grow 2.4% in 2017 and 2.2% in 2018. The market outlook for Victoria is thus positive for 2017, supported by lower fuel prices, which have supported an increase interprovincial traffic, and the weaker Canadian dollar, which will continue to attract more international visitors. The outlook for convention activity is also positive. In this environment, the market-wide occupancy is projected to increase significantly, especially since the market will see a decrease in supply with the closure of 180-room Harbour Towers Hotel & Suites. With the help of strong gains in ADR, the market-wide RevPAR is projected to increase by 7% to $116 in 2017.

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—growth is projected at 11.1% and 8.7% in 2017 and 2018, respectively. By 2020, the Victoria lodging market is projected to have the fourth highest per-room value in the country at $181,625.

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
2005 84.21
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 108.00
2017 115.78
2018 (f) 125.82
2019 (f) 132.16
2020 (f) 136.15

For more information, please contact:

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