Canada -  Montreal Downtown

For the MONTREAL DOWNTOWN lodging market, business services and life sciences sectors are the main drivers of lodging demand. The numerous major projects that are taking place in the area, such as the $5.5-billion light-rail transit project and the $300-million residential Destination YUL project, are expected to support demand growth going forward.

In 2016, the Montreal Downtown lodging market achieved a RevPAR of $141, which reflects growth of 8.2% cobbled together from increases in both occupancy and ADR. A 1.8% reduction in the room supply from the closure of the 950-room Fairmont Queen Elizabeth in June 2016 supported the improvement in operating performance. Given the favourable economic performance in 2016, the market realized a per-room value of $124,768 that year, up 16.9% from the 2015 level, which is stronger than what we had projected in the 2015 HVI report.

In 2017, the room supply is projected to increase by 4.0% because the 950-room Fairmont Queen Elizabeth re-opened in July 2017 and the 90-room Mount Stephen Hotel and the 221-room Holiday Inn & Suites Montreal Downtown West also opened. Market-wide demand is projected to grow at a stronger pace than supply, and the market-wide ADR is projected to increase by 7%, resulting in a RevPAR of $155, up 9% from the previous year. With this strong performance, the per-room value for the Montreal Downtown market is projected to jump to $141,257 in 2017, a 13.2% increase from the 2016 level. The city has had a record-breaking year in terms of visitation, ADR, and occupancy, owing largely to the city’s 375th anniversary celebrations.

The performance of the market is projected to be positive over the next three years with healthy demand growth. A significant influx of new supply into the market in 2018 will put downward pressure on occupancy rates, resulting in negative value growth that year, but positive growth is projected to resume in 2019. The new supply will include the 269-room Hotel Monville, the 150-room AC by Marriott Hotel, the 120-room Birks Hotel, the 170-room Four Seasons Hotel, and the 193-room Autograph Hotel by Marriott.

The per-room value for Montreal Downtown is projected to only see modest growth overall over the next three years as the market works to absorb the new guestroom supply and market conditions normalize following the 375th anniversary year in 2017. By 2020, the Montreal Downtown market is projected to have the eleventh highest per-room value among the major markets in Canada, down from eighth position in 2016.

Change In Value For Market: ($CAD)

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%

Montreal Downtown RevPAR Change ($CAD)

Montreal Downtown RevPAR ($CAD)

Year RevPAR
2006 $102.15
2007 $97.69
2008 $94.62
2009 $84.27
2010 $97.79
2011 $101.15
2012 $96.56
2013 $104.14
2014 $118.43
2015 $128.60
2016 $141.25
2017 $154.88
2018 (f) $151.93
2019 (f) $157.24
2020 (f) $161.79

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)