Canada -  Quebec City

The QUEBEC CITY lodging market is driven largely by provincial government demand—Quebec City is the provincial capital and so the provincial government has a strong influence on the local economy. The Conference Board of Canada estimates the total number of overnight visits in Quebec City to have increased by 4.4% in 2016. The increase in the number of overnight stays is largely due to a significant rise in international and US visitation, for which the low Canadian dollar is mainly responsible.

The Quebec City lodging market achieved a RevPAR of $112 in 2016, up 9% from the 2015 level, driven mainly by ADR growth. In the 2016 HVI report, the per-room value of the Quebec City lodging market was projected to increase by 12.9% in 2016; however, the year-end performance was slightly stronger than had been anticipated, and the per-room value actually increased at a rate of 13.5% to $109,191. Given the favourable economic conditions, the market is expected to achieve a RevPAR of $120 in 2017, up 7% over the previous year, founded upon increases in both occupancy and ADR.

Over the next few years, the market-wide room supply is expected to see only limited growth. The Le Phare mixed-use project has been postponed several times since being announced, and the public consultations have not yet commenced. The first phase of the new hospital complex of the CHU of Quebec City on the Enfant-Jesus Hospital site is currently under construction. The entire project has an estimated price tag of $1.967 billion and is planned for completion in 2025.

Quebec City has many attractions that drive tourism activity. The iconic Chateau Frontenac will be celebrating its 125th anniversary in 2018, and a number of festivals and events bring tourists to the city on a year-round basis. The market will also benefit from the G7 occurring in Charlevoix in May 2018; this event will require 3,000 rooms for three days. In addition, Tourism Quebec has increased government funding to maintain its aggressive marketing campaign that promotes Quebec to drive-in markets along the Eastern Seaboard. With these factors in place, modest growth is anticipated for 2018, and the outlook for the market area is positive.

In this prosperous climate, the per-room hotel value for the Quebec City market is projected to reach $114,218 in 2017, which exceeds the previous peak of $110,304 achieved in 2008 when the 400th anniversary of the city was celebrated. The per-room hotel value for Quebec City is projected to reach $129,648 in 2020, putting the market into fourteenth place among the major lodging markets in Canada, up three positions from 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%

Quebec City RevPAR Change ($CAD)

Quebec City RevPAR ($CAD)

Year RevPAR
2005 $89.23
2006 $88.22
2007 $87.14
2008 $109.85
2009 $84.32
2010 $88.17
2011 $93.59
2012 $95.11
2013 $90.61
2014 $101.37
2015 $104.01
2016 $112.18
2017 $119.96
2018 (f) $123.86
2019 (f) $128.03
2020 (f) $133.20

For more information, please contact:

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