Canada -  Calgary

CALGARY is home to one-sixth of the country’s headquarters, 70% of which are energy related and very sensitive to changes in oil prices. In 2015 and 2016, when oil prices where at their lowest, the city’s GDP contracted. In 2016, it was 7% lower than in 2014. The economy started to recover in 2017, and Calgary registered the highest growth in Canada that year with a 6.3% increase in GDP. Uncertainty nonetheless remains, especially because pipeline expansions are needed to avoid the bottlenecks that are currently stifling economic growth. The GDP is projected to grow 2.9% in 2018, which is encouraging after the negative growth seen during the recession; however, it is still below the 3.9% average for the ten years prior to 2014.

In 2013, before the drop-in oil prices, Calgary had the highest value per room in the country at $202,241. For 2017, the city was ranked twelfth with a value of $131,094, having lost one-third of its value. The value of a hotel room in Calgary has been increasing since 2017; however, the value is still well below the levels registered historically.

Growth in hotel values is expected to continue over the next few years because of increasing demand and economic recovery. Alberta is also expected to grow the visitor economy to $10 billion by 2020 by targeting countries with great potential, such as the US, Germany, the UK, Japan, China, and Mexico. New air service to these destinations has been established. Calgary will also host the FINA Diving Grand Prix in 2018 and the Grey Cup in 2019. Consequently, lodging demand is expected to grow by 4.5% and 8.0% in 2018 and 2019, respectively.

There are two hotels that have opened: the Alt Hotel and the Holiday Inn & Suites Calgary Airport North. This new supply will be offset by the closure of the 247-room Travelodge Calgary MacLeod Trail. With demand increasing and a slight 0.4% contraction in supply, the RevPAR for 2018 is expected to increase by 7.3%. In 2019, five new properties representing 1,087 additional rooms are expected to enter the market, which will curtail RevPAR growth. The market-wide occupancy is projected to return to the 2018 level by 2020, and the RevPAR is projected to reach almost $100 by 2021, which represents a 7-year high that is nonetheless $15 below the RevPAR record set in 2014.

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%

Calgary RevPAR Change ($CAD)

Calgary RevPAR ($CAD)

Year RevPAR
2006 $95.80
2007 $105.62
2008 $110.44
2009 $96.41
2010 $93.26
2011 $97.88
2012 $113.71
2013 $121.24
2014 $115.03
2015 $101.43
2016 $85.75
2017 $86.17
2018 (f) $92.43
2019 (f) $93.04
2020 (f) $95.82
2021 (f) $99.76

For more information, please contact:

Jason Wight, AACI
[email protected]
  • +1 604 988-9743 (w)