Canada -  Toronto Downtown

The city of Toronto is an international centre for business and finance. In 2015, the Toronto Downtown lodging market enjoyed strong growth in RevPAR, which was up 7.7% from the 2014 level, even though a 1.4% increase in the room supply contributed to a slight decline in occupancy. The market also suffered a decline in demand during the Pan Am Games, as people had a fear of traffic and so avoided staying in the Toronto Downtown market during the months of July and August. As a result, a large amount of convention activity took place outside of the downtown market in this period. Nevertheless, the market enjoyed solid growth in the tourism sector thanks to the weakened Canadian dollar and low gasoline prices.

In the 2015 HVI report, the per-room value of the Toronto Downtown market was projected to increase by 12.2%. Given the strong year-end market performance, our revised numbers indicate an actual increase of 17.6% to $184,450—the second-highest per-room value in the country that year.

In 2016, the city is expected to enjoy another year of solid growth with an upswell in convention and leisure activity. As numerous international events are taking place in the city, including the 2016 NBA All-Star Game, the 104th Grey Cup, and the 2016 World Cup of Hockey, a 17.1% increase in the market-wide RevPAR is projected for 2016. In support of this, the room supply is projected to decrease by 2.8% with the closure of Best Western Primrose and the Hilton Garden Inn Toronto Downtown. In this context, the per-room value for the Toronto Downtown market is expected to reach $226,862 in 2016, reflecting record-breaking growth of 23.0% over the 2015 level.

Over the next four years, the Toronto Downtown market is expected to see a 6.8% increase in the room supply. Given the size of the market and the continuous increases in demand, the market is expected to easily absorb the new room supply. Against this background, the market-wide per-room value is projected to reach $254,328 in 2019. This positions the Toronto Downtown market with the second-highest per-room value among the 19 major markets in Canada.

Change In Value For Market: ($CAD)

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%

Toronto Downtown RevPAR Change ($CAD)

Toronto Downtown RevPAR ($CAD)

Year RevPAR
2006 $118.16
2007 $120.69
2008 $121.00
2009 $99.23
2010 $116.48
2011 $116.06
2012 $119.29
2013 $125.01
2014 $131.23
2015 $141.34
2016 $165.49
2017 (f) $172.99
2018 (f) $181.04
2019 (f) $184.08

For more information, please contact:

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