Canada -  Toronto Downtown

The city of Toronto is an international centre for business and finance. In 2016, the TORONTO DOWNTOWN lodging market enjoyed record-breaking growth in RevPAR, which was up 16% from the 2015 level to $165, mainly because of a 1.5% decline in the room supply with a robust increase in ADR. The ADR advanced because the weakened Canadian dollar has been putting local hotel managers in a position to negotiate better rates with international accounts, especially those from the United States.

In general, the hospitality and tourism industry is getting a boost from the low Canadian dollar, which is encouraging tourism both domestically and from abroad. City-wide events, including the NBA All-Star Game, the Microsoft Worldwide Partner Conference, and the World Cup of Hockey, also contributed to demand growth.

In the 2016 HVI report, the per-room value of the Toronto Downtown market was projected to increase by 23.0%. Given the year-end market performance, our revised numbers indicate an actual increase of 22.5% to $225,874—the second-highest per-room value in the country that year.

In 2017, the city is expected to enjoy another year of solid growth supported by an increase in convention and tourism activity. According to the Conference Board of Canada’s Travel Market Outlook, US and overseas travellers to the city will increase significantly from now through 2020. Despite the slight increase in supply with the opening of the new 96-room Bisha Hotel and the 58-room Broadview Hotel, an 8.0% increase in the market-wide RevPAR is projected for 2017. In this context, the per-room value for the Toronto Downtown market is expected to reach $261,684 in 2017, reflecting growth of 15.9% over the 2016 level

Over the next three years, the Toronto Downtown market is expected to see a 6% increase in the room supply. Given the size of the market and the steady growth 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 $318,663 in 2020, which 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)

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%

Toronto Downtown RevPAR Change ($CAD)

Toronto Downtown RevPAR ($CAD)

Year RevPAR
2005 $111.96
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 $164.76
2017 $177.95
2018 (f) $186.68
2019 (f) $191.77
2020 (f) $195.91

For more information, please contact:

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