Canada -  Victoria

The Victoria hotel market has been improving steadily since recovery got underway in 2013. The market-wide RevPAR increased 10.4% to $98.30 in 2015. The resurgence of American travel to Canada with the downward slide in the Loonie, combined with a surge in the number of travellers from China, supported this growth. With the strength of the market, the per-room value increased by 10.1% to $119,113 in 2015, which is close to the values supported prior to the recession, and also to our projection of $120,750 made in the previous HVI.

According to the Conference Board of Canada, Victoria will realize stronger GDP growth in 2016 than in any year since 2008; the city’s real GDP is projected to grow 2.3% that year. The market outlook for Victoria is thus positive for 2016. Although the market-wide occupancy is projected to decrease slightly as a result of new supply entering the market, with a Holiday Inn Express and Suites and a DoubleTree by Hilton, the RevPAR is nonetheless projected to increase at a strong rate of 8.3% to $106.42 with the help of gains in ADR.

With the expected improvement in operating performance, the per-room value for the Victoria lodging market is projected to increase strongly and steadily over the coming years with growth of 15.1% and 7.3% in 2016 and 2017, respectively. By 2019, the Victoria lodging market is projected to have the fifth-highest per-room value in the country at $150,923, up from eleventh highest in 2015; this represents the largest projected upward shift in ranking among the markets studied.

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%

Victoria RevPAR Change ($CAD)

Victoria RevPAR ($CAD)

Year RevPAR
2006 $84.94
2007 $91.44
2008 $87.64
2009 $78.66
2010 $76.15
2011 $75.30
2012 $73.62
2013 $80.76
2014 $88.98
2015 $98.30
2016 $106.42
2017 (f) $112.89
2018 (f) $116.30
2019 (f) $119.82

For more information, please contact:

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