For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
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EDMONTON, the capital of Alberta, is the sixth-largest city in Canada with a population of 1.4 million. Edmonton is a hub for activity in the North. The economy has benefitted from oil projects in Alberta, and it is heavily reliant on the oil and gas industry. This impacts other sectors, including wholesale and retail trade, manufacturing, and construction. The provincial government and educational institutions also support the local economy.
Construction in Edmonton has been rebounding in 2025, with Dow Chemicals, the Winspear Centre, and large-scale residential developments all generating activity. This construction momentum is expected to accelerate from 2026 through 2028.
Although not to the same degree as Calgary, Edmonton’s economy is expected to see GDP growth above the national average in the coming years, supported by increased capital spending in the resource sector and continued population growth. The Conference Board of Canada projects GDP growth for 2025 at 1.4%, with stronger average annual growth of 2.7% from 2026 through 2028. A focus on domestic oil needs and major nation-building capital projects, including pipelines, would benefit Edmonton while creating economic security.
Prior to the pandemic, hotel demand was soft in the Edmonton market; this was largely due to the oil crisis in 2015 and 2016, which caused significant economic contractions. Since 2021, this market has seen positive demand growth and investment interest, resulting in an increase in the value per room. Between 2025 and 2028, no new supply is expected to enter the market, allowing the market to continue to build occupancy and increase average room rates.
A 9.4% increase in per-room value is projected for 2025, which is significantly higher than the average national growth, and double-digit increases are projected through to 2028. With its low average room rate, Edmonton holds the nineteenth position among the 20 markets under comparison, but it is projected to move up to seventeenth position by 2028, although it will nonetheless retain one of the lower per-room values among the Canadian markets. By 2028, the per-room value in this market is projected to reach $170,500, with an HVI value of 1.73.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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