Canada -  Saskatoon

Saskatoon is the largest city in the province of Saskatchewan. The market is driven by an array of sectors, including agriculture, mining, and biotechnology, as well as government and healthcare demand.

In 2015, economic activity slowed, and the city experienced negative real GDP growth of 1.3%, according to Conference Board of Canada. The decline in oil and gas prices and the increased volatility in commodity prices have affected the regional economy. This trend is expected to continue in 2016, when slow GDP growth of 0.9% is projected.

In 2015, the market-wide RevPAR fell by 12.1% from the 2014 level. The room supply increased by 6.3% that year even as room demand fell. Consequently, the market-wide occupancy and ADR both declined. In the 2015 HVI report, the per-room value of the Saskatoon market was projected to decrease by 7.5%. The actual year-end performance was much softer than anticipated, and the per-room value actually decreased by 11.6% to $137,803. The market nonetheless ranked as fifth highest in per-room value in 2015.

The Saskatoon lodging market is projected to remain soft through 2016. The market-wide RevPAR is forecast at $75.91, which reflects a drop of 18.1% from the 2015 level. This large decrease in RevPAR is due to an 8.7% increase in the room supply contributing to a 7.1 percentage points drop in occupancy. On top of this, the ADR is projected to fall another 8.0%. In this context, the projected per-room value for 2016, at $111,873, is down 18.8% from the level recorded in 2015.

With the expectation of a recovery in oil prices, the Conference Board of Canada projects positive GDP growth of 3.0% for the city of Saskatoon in 2017. Despite the positive GDP growth, the market is expected to see further decreases in value during the next four years, mainly because of new supply. For 2019, the per-room value is projected to reach $109,271, the lowest this market has seen, which puts the market in seventeenth position among the 19 major markets in Canada, down 12 positions down from 2015.

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%

Saskatoon RevPAR Change ($CAD)

Saskatoon RevPAR ($CAD)

Year RevPAR
2006 $65.42
2007 $79.46
2008 $92.76
2009 $95.29
2010 $99.66
2011 $97.63
2012 $103.63
2013 $106.16
2014 $106.76
2015 $92.65
2016 $75.91
2017 (f) $74.45
2018 (f) $75.80
2019 (f) $76.26

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
CRussell@hvs.com
  • +1 604 988-9743 (w)