Canada -  Regina

The REGINA hotel market is driven largely by the agriculture sector and the oil and gas industry. As the capital city of Saskatchewan, the market also benefits from government demand.

The improvement in oil prices is fuelling economic activity this year. A modest recovery is taking hold in the province, driven in large part by a sharp increase in export activity. Energy exports are rebounding strongly, but non-energy exports are also solid, led by impressive gains in the output of industrial machinery. RBC is projecting a 1.4% increase in GDP for the province as a whole in 2017. For Regina more specifically, the Conference Board of Canada is projecting even stronger GDP growth of 2.9% this year.

In 2016, the Regina lodging market was faced with a decline in economic activity and a significant increase in supply, resulting in losses in both ADR and occupancy. Consequently, the market-wide RevPAR dropped to $74, a decline of 6% from the previous year. The 10.5% increase in the room supply was largely responsible for the erosion of RevPAR that year. In this environment, the per-room value for 2016 decreased to $118,289, which put the market in thirteenth place among the 19 major lodging markets in 2016.

In 2017, the Regina economy is showing positive growth for the first time since 2014; however, this has not as yet translated into positive growth for the local lodging market. The Regina hotel market is still projected to suffer losses in both demand and ADR, pushing the RevPAR down to $66, a 10% drop from the previous year. Against this backdrop, the per-room value for the Regina hotel market is projected to decrease by the largest drop witnessed to date for this market at 16.8% to $98,406 in 2017.

Since peaking at $151,012 in 2013, Regina’s per-room value has been on a downward slide in response to softening of market conditions and substantial increases in the room supply. This trend is expected to end in 2018, when the RevPAR is projected to increase by 3% and the new supply pipeline is anticipated to slow significantly. Moreover, RBC is projecting stronger GDP growth for the province in 2018 at a rate of 2.8% with the anticipated growth in the energy, agriculture, and mining sectors. The per-room value is projected to increase steadily, reaching $108,257 in 2020. This puts the market into eighteenth position among the 19 major markets in Canada in 2020, five positions down from the 2016 ranking.

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%

Regina RevPAR Change ($CAD)

Regina RevPAR ($CAD)

Year RevPAR
2005 $56.52
2006 $61.75
2007 $69.26
2008 $76.43
2009 $78.83
2010 $80.65
2011 $87.69
2012 $91.52
2013 $98.79
2014 $88.50
2015 $79.61
2016 $73.81
2017 $65.99
2018 (f) $67.97
2019 (f) $70.71
2020 (f) $72.59

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
[email protected]
  • +1 604 988-9743 (w)