Canada -  Montreal Airport

The MONTREAL AIRPORT market is centered on Pierre Elliott Trudeau International Airport, which currently offers service to 150 destinations, including 91 outside of Canada. Nine new destinations were introduced in 2018, including Tel Aviv, Shanghai, Marseille, and Reykjavik, and at least two more are expected to be added in 2019. In 2016, the airport capacity was increased thanks to a 5-year expansion plan. Moreover, a new $2.5-billion expansion has been announced that will see the addition of 20 to 30 gates at a new terminal by 2030. With the celebration of Canada 150 and the 375th anniversary of Montreal, airport traffic increased in 2017, when the passenger count exceeded 18 million.

The Montreal Airport market realized strong RevPAR growth in 2017 because of both demand growth and a decrease in inventory with the closure of the 214-room Best Western Montreal Airport. The increase in demand and the reduction in supply put pressure on the market, which allowed hoteliers to raise rates, resulting in an 11.8% increase in ADR that year.

To fill the gap created by the closure of the hotel and match the market needs, the Home2 Suites Montreal Dorval and the DoubleTree by Hilton Montreal Airport opened in Dorval, adding 275 rooms to the market in September 2018. Demand is projected to contract by 1.0% in 2018, which is a function of the extraordinary increase in demand that had been sustained the previous year; this contraction represents the normalization of the market following the stellar performance in 2017.

After nine years of continuous growth, the market-wide RevPAR is projected to reach $110 for the first time in 2018. Over the forecast period, new records are going to be set every year. Between 2018 and 2021, the RevPAR is projected to grow 2.8% per year, which is healthy but well below the 18.2% increase that was realized in 2017.

As estimated in the previous HVI, the per-room value for the Montreal Airport market increased by double digits for the third time in a row in 2017, bringing the value up to $126,526. Lower growth of 9.5% is projected for both 2018 and 2019, and value growth is then expected to moderate.

The strong growth that occurred in 2017 moved the market up to fourteenth position among the major markets in Canada, whereas it was near last place in 2016. By 2021, the market is expected move up two more spots to twelfth place. Even with this improvement, the Montreal Airport market will remain well below the Vancouver and Toronto Airport markets, which are expected to rank third and fifth in 2021 with a per-room value of $359,100 and $260,800, respectively, in comparison to $160,355 for the Montreal Airport market.

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%

Montreal Airport RevPAR Change ($CAD)

Montreal Airport RevPAR ($CAD)

Year RevPAR
2006 $75.42
2007 $76.87
2008 $72.52
2009 $58.19
2010 $62.43
2011 $69.85
2012 $73.22
2013 $74.89
2014 $78.37
2015 $83.07
2016 $91.00
2017 $107.62
2018 (f) $110.47
2019 (f) $113.44
2020 (f) $115.29
2021 (f) $119.90

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)