Canada -  Victoria

Overview:

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.

Valuation Trends and Predictions:

Victoria Canada
Previous Year +15% (7 of 19) +9% (12 of 19)
Growth in 2017 +7% (5 of 19) +5% (12 of 19)
Growth in next 3 years +10% (12 of 19) +8% (15 of 19)

Change In Value For Market:

Victoria RevPAR % Change

For more information, please contact:

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