Canada -  Ottawa-Gatineau

The OTTAWA-GATINEAU lodging market is highly driven by government demand because Ottawa is Canada’s capital city. From 2012 to 2015, the market experienced slow economic growth, mainly because of the previous government’s cuts to the public service. The Conference Board of Canada is projecting real GDP growth of 2.5% for Ottawa-Gatineau in 2017. The resumption of hiring in the public administration sector is fuelling this growth. The new federal government has also introduced billions of dollars in new spending measures, which is creating positive spinoffs for the local Ottawa economy.

In 2016, the Ottawa-Gatineau lodging market realized a record-breaking RevPAR of $114, up 3% over the previous year. Gains in both market-wide demand and ADR contributed to this growth. Given the stronger performance, the market achieved a per-room value of $133,979 in 2016, up 6.1% over the previous year, which is higher than the increase of 5.4% that we projected in the 2016 HVI report.

In 2017, the market-wide RevPAR is projected to grow 13%, mainly because of rate growth, but a 5.0% increase in room demand is also projected, spurred by festivities associated with Canada 150, which brought thousands of Canadians to the National Capital Region. The local lodging industry is also set to benefit from other special events, including the Juno Music Awards, the 105th Grey Cup, and a four-day tribute to the Stanley Cup. The anticipated RevPAR growth takes into account a projected 2.0% increase in the room supply, which stems from the recent opening of the 119-room Holiday Inn Express & Suites Gatineau as well as the balance of the new supply which entered the market in 2016 with the openings of the 200-room Andaz by Hyatt and the148-room  Alt by Germain. A number of major projects are also taking place in Ottawa, such as the $5.1-billion light-rail transit project and the $3-billion Parliament Buildings renovation project, which will support demand growth going forward. With this improvement in market performance, the per-room value is expected to advance significantly at a rate of 13.2% in 2017.

From 2017 through 2020, a slew of new hotels are slated to enter the market. The hotels in the pipeline include the Homewood Suites Ottawa Airport, the Hilton Garden Inn, the Holiday Inn Express & Suites Ottawa, the Best Western Glo, and the Hotel Le Germain, as well as new supply at the airport. Nevertheless, hotel operating performance and demand are also expected to strengthen during this period, resulting in growth in the per-room hotel value of the market. The per-room value is projected to reach $160,733 in 2020, making the Ottawa-Gatineau market fall by one ranking to sixth position among 19 major Canadian lodging markets, in behind the Halifax-Dartmouth market.

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%

Ottawa-Gatineau RevPAR Change ($CAD)

Ottawa-Gatineau RevPAR ($CAD)

Year RevPAR
2006 $89.32
2007 $93.98
2008 $95.99
2009 $89.77
2010 $91.77
2011 $96.47
2012 $97.38
2013 $95.23
2014 $101.13
2015 $109.83
2016 $113.71
2017 $128.76
2018 (f) $132.39
2019 (f) $134.23
2020 (f) $138.11

For more information, please contact:

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