Canada -  New Brunswick

The NEW BRUNSWICK lodging market is benefitting from the province’s slow but steady economic growth and increases in the number of overnight travellers. As per RBC, the province realized GDP growth of 1.4% in 2016, supported by a solid performance in non-residential construction and tourism-related industries. In 2017, both tourism and overall economic growth have been strong despite of the uncertainty surrounding the trade dispute with the United States over softwood lumber. As such, RBC is projecting a 1.6% increase in real GDP for the year.

In 2016, the New Brunswick lodging market benefitted from an increase in tourism demand stemming from the low Canadian dollar. This resulted in a stronger RevPAR of $70, up 6% over the 2015 level. In the 2016 HVI report, the per-room value of the New Brunswick lodging market was projected to increase by 11.2%, but it actually increased at a slightly lower rate of 10.6% to $80,873 with the year-end performance of the market taken into account.

In 2017, the New Brunswick lodging market is projected to realize a 4% increase in demand, supported by the celebration of Canada 150 and favourable summer weather. With gains in both demand and ADR, the market-wide RevPAR is projected to grow 8% to $75. In light of this, the per-room value is projected at $88,243 for 2017, up 9.1% over the level achieved in 2016.

Over the next three years, approximately 600 rooms will be added in the province, the bulk of which will be in Moncton. A number of hotels are in the pipeline, including the Holiday Inn Express & Suites Moncton, the Hilton Garden Inn Fredericton, the Wesley Boutique Hotel Moncton, and the Radisson Hotel Fredericton. The province-wide per-room value is projected to grow steadily, reaching $94,862 in 2020. Even with this improvement, the market is projected to rank last for per-room value out of all the major markets in Canada in 2020, the same place the market occupied 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%

New Brunswick RevPAR Change ($CAD)

New Brunswick RevPAR ($CAD)

Year RevPAR
2005 $61.81
2006 $64.66
2007 $67.04
2008 $65.13
2009 $62.46
2010 $62.96
2011 $62.24
2012 $59.94
2013 $61.34
2014 $62.63
2015 $65.29
2016 $69.57
2017 $75.36
2018 (f) $77.22
2019 (f) $78.03
2020 (f) $81.01

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
mrosszell@hvs.com
  • +1 416 686-2260 (w)