Canada -  Edmonton

EDMONTON is the capital of the most energy-resource-rich province in Canada, has suffered in response to the drop in oil and gas prices in 2015 and 2016. Other closely tied industries have also faced output contractions. Pipeline constraints created an oversupply problem in mid-2018, and the government was once again forced to mandate production cuts in January 2019. The Province has since eased up on production limits because prices have strengthened. With modest growth in the energy sector, the economy of Edmonton is now expected to decline by 0.4% in 2019, followed by a 2.2% growth in 2020. The weak economy has attracted fewer people to the city, which has reduced the growth in the local labour force and in demand for hotel accommodation.

Since the oil crisis that severely affected demand in 2015 and 2016, resulting in contractions of 7.3% and 5.1%, respectively, the economy has been recovering slowly. In 2018, the demand for rooms rose by 5.2%, up from the increase of just 0.1% in 2017, and the market registered a 4.0% increase in RevPAR—the first increase since 2014. In 2019, however, demand is expected to increase at a slower rate of 2.0%, which is not enough to offset the expected increase in supply. This combined with a 1.5% decrease in ADR is expected to yield a drop in RevPAR this year.  

Six new hotels have opened in Edmonton: the JW Marriott, the Tru by Hilton, the dual-branded Element and Four Points Edmonton West, the Fairfield Inn & Suites near Edmonton International Airport, and the Sandman Signature Hotel in Sherwood Park. These new rooms will make it difficult for this market to realize the occupancy levels it had seen prior the downturn in the oil and gas industry.

In 2019, the value is expected to drop to a low of $99,700 with a further decrease in 2020. A resumption of growth is projected for 2021, and the per-room value is projected to reach $102,200 in 2022.

In 2018, Edmonton was ranked sixteenth among the 19 largest markets (including Canada), and it is projected to come in nineteenth in 2022, which is well below the rank of sixth place it had held in 2015.

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%

Edmonton RevPAR Change ($CAD)

Edmonton RevPAR ($CAD)

Year RevPAR
2006 $79.87
2007 $89.54
2008 $93.40
2009 $80.40
2010 $77.09
2011 $76.96
2012 $83.20
2013 $90.52
2014 $93.40
2015 $82.83
2016 $73.60
2017 $69.76
2018 $72.57
2019 $69.49
2020 (f) $71.05
2021 (f) $73.45
2022 (f) $74.78

For more information, please contact:

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