Canada -  Calgary

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013

CALGARY is situated in the eastern foothills of the Canadian Rocky Mountains but is known for being home to the Canadian headquarters of many energy companies. The city’s economy is primarily driven by the oil and gas sector; however, financial services, the film industry, transportation and logistics, technology, manufacturing, retail, and tourism are also prominent sectors of the local economy. Calgary is known as the energy capital of Canada because it is the home of oil and gas corporations, such as Suncor, Canadian Natural Resources, Imperial Oil, TC Energy, and Husky Energy.

The oil and gas sector has been facing significant headwinds since late 2014.  Since then commodity prices have been volatile, and pipeline constraints have limited the market for oil and gas products.  The impacts have been widespread across the province and unveiled a structural issue with provincial funding and led to austerity measures to reduce the size of the public sector.  In 2015 and 2016, Calgary experienced significant increase in the number of new hotels, soft demand and declining rates, which resulted significant decline in hotel values.

The current pandemic has significantly increased the volatility with oil prices cratering in response to significantly lower demand prospects owing to spreading global shutdowns and coupled with geopolitical tensions between oil producing nations that began with a price war between Russia and OPEC. As a result, the prospects for the energy sector are grim even on the other side of the immediate impacts of the pandemic which have been rapid, widespread, and deep.

The market will see a decline in values in 2020 as performance metrics across the market collapse and the prospects for recovery being less favourable than other markets due to the volatility and uncertainty in the energy sector which plays a key role in the Calgary economy.

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%

For more information, please contact:

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