Canada -  Montreal Downtown

MONTREAL DOWNTOWN is a major hub for European and North American trade thanks to its historical relationship with France and its location on the St. Lawrence Seaway. The bilingual city is also considered to be a powerhouse in information and communication technology, which is contributing to GDP growth of 2.2% in 2018. Google, Microsoft, and Facebook have chosen to base their Artificial Intelligence labs in the city, and Montreal has been chosen, in partnership with Inspired Minds, to hold the World Summit AI for America for 2019 to 2021. This major event will attract 6,000 participants and generate approximately 32,500 room nights, coming on top of the 140 annual international events that make Montreal the number one destination for international conventions in North America.

In 2017, Canada 150 and the city’s 375th anniversary helped to boost the number of overnight visitors by 5.3%. The rate of growth in visitation is expected to moderate to 2.3% in 2018, supported by such events as the Montreal Jazz Festival, the Montreal Grand Prix, and the Canadian Swimming Championships. The City has set a target of reaching 13.5 million annual tourists by 2022.

With the surge in visitation in 2017, the RevPAR grew by 8.4%, driven by a 7.4% gain in ADR and a 3.2% increase in demand. In 2018, there has been a significant increase in supply in conjunction with modest demand growth (which is positive given the robust growth that was realized in 2017). With the decrease in occupancy from the new supply, the market is expected to sustain a 3.9% drop in RevPAR. The re-opening of the Queen Elizabeth in brought 950 rooms back into the market, which has also faced new supply in the form of the AC by Marriott, the Hotel Monville, and the Birks Hotel. In total, the market will have 1,070 more rooms in 2018 than in 2017. Supply growth is expected to continue after 2018 but at a more moderate pace of roughly 3.0% per year, which is more aligned with the projected demand growth of 4.0% per year. This will have a beneficial effect on the RevPAR, which should be back to the 2017 level by 2019.

Against this backdrop, the per-room value for the Montreal Downtown market skyrocketed to $159,101 in 2017, reflecting an increase of 26.1%, which is well above the 13.2% increase that had been projected in HVI 2017. The value is expected to contract slightly in 2018 before again seeing double-digit growth in 2019 and 2020, surpassing the $200,000 market in the latter year. With a projected per-room value of $213,671 in 2021, the Montreal Downtown market is expected to occupy sixth position among the 19 major markets in Canada.

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 Downtown RevPAR Change ($CAD)

Montreal Downtown RevPAR ($CAD)

Year RevPAR
2006 $102.21
2007 $97.72
2008 $94.59
2009 $84.33
2010 $97.80
2011 $100.82
2012 $96.56
2013 $104.14
2014 $118.30
2015 $128.03
2016 $139.66
2017 $151.26
2018 (f) $145.40
2019 (f) $151.15
2020 (f) $156.22
2021 (f) $160.60

For more information, please contact:

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