Canada -  Edmonton

EDMONTON is the capital of Alberta, which has the third-largest oil reserves in the world and is the most energy-resource-rich province in Canada. Even though Edmonton’s economy is well diversified, supported by manufacturing, construction, and financial services, a majority of jobs are linked, directly or indirectly, to the energy sector. With the drop in oil prices that occurred in 2014, the economy took a hit, resulting in negative GDP growth. Economic recovery got underway in 2017 with a 5.0% increase in GDP, and a more modest 2.8% increase in GDP is projected for 2018.

The oil crisis severely affected demand in 2015 and 2016, resulting in contractions of 7.3% and 5.1%, respectively, causing a double-digit decrease in RevPAR in both these years. Supply growth has exacerbated the effects of the recession. In 2017, 1,047 new rooms were added to the market, representing a 6.1% increase in supply. At the same time, demand increased just 0.1% causing a 5.1% contraction in RevPAR.

In 2018, demand is expected to increase by 5.0%, paving the path to a positive increase in RevPAR for the first time since 2014. Demand growth is projected to outpace supply growth, leading to stronger occupancy and ADR levels. By 2021, the RevPAR is projected to increase by $8.00 over the 2018 level, although it is expected to remain below the prior peak.

The value per room is also projected to resume growth in 2018 after three consecutive years of decline. The value, at $111,283, is down 28% from the peak of $155,536 registered in 2014. Moderate value growth is projected for the ensuing years. By 2021, the value per room is projected to reach $114,958.

In 2017, Edmonton was ranked sixteenth among the 19 largest markets (including Canada), and it is projected to remain in the last five markets by 2021. The city was ranked in the top five 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%

Edmonton RevPAR Change ($CAD)

Edmonton RevPAR ($CAD)

Year RevPAR
2006 $79.91
2007 $89.49
2008 $93.44
2009 $80.45
2010 $77.08
2011 $76.96
2012 $83.20
2013 $90.52
2014 $93.40
2015 $82.83
2016 $73.60
2017 $69.72
2018 (f) $72.11
2019 (f) $73.76
2020 (f) $76.98
2021 (f) $80.08

For more information, please contact:

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