Canada -  Winnipeg

As Manitoba is relatively unexposed to the energy sector, the decline in oil prices has not negatively affected the economy of WINNIPEG to the same extent as other cities in the Canadian Prairies. The Conference Board of Canada is projecting the real GDP to increase by a solid 3.6% in 2017; this would be the strongest growth in nearly 20 years, and it follows on the growth of 3.2% realized in 2016. Despite a slight decline in ADR, the Winnipeg market sustained a 4% increase in RevPAR in 2016.

The outlook for the Winnipeg lodging market in 2017 is positive given the strong economic growth being seen in the market coupled with the moderate ADR growth that has taken place. Based on the year-to-date performance, the RevPAR is projected to grow by 10% this year. Some new supply has entered the market with the opening of 127-room Hilton Garden Inn Winnipeg South and the 80-room Super 8 Winnipeg; however, the closure of the 106-room St. Regis Hotel has helped to soften the impact on market performance.

The per-room value of the Winnipeg lodging market is projected to grow another 10.3% in 2017 to $142,099 after having increased 5.9% in 2016 to $128,812. The growth in value seen in 2016 was slightly stronger than our previous projection of 5.4%.

Over the next three years, the room supply in the Winnipeg hotel market is projected to increase. As a result, the growth in the per-room value for the market is projected to grow at a pace more moderate than what the market has seen over the past few years. With the slowdown in growth, the Winnipeg hotel market is expected to go from having the seventh-highest per-room value in the country in 2016 to the tenth highest in 2020.

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%

Winnipeg RevPAR Change

Winnipeg RevPAR

Year RevPAR
2005 56.79
2006 62.32
2007 67.38
2008 75.50
2009 70.81
2010 76.57
2011 79.08
2012 76.76
2013 73.93
2014 74.56
2015 77.58
2016 79.99
2017 88.24
2018 (f) 91.97
2019 (f) 92.47
2020 (f) 92.44

For more information, please contact:

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