Canada -  Montreal Downtown

MONTREAL DOWNTOWN is supported by a robust and expanding finance, insurance, and real estate sector. In addition, modest growth is anticipated for the public administration and educational services sector. Service industries will create more than 17,000 jobs for the local economy this year, and the unemployment rate has been dropping year after year. The 67-kilometre Réseau Express Métropolitain Light Rail Train (LRT) project is expected to support growth in the construction industry.

With the re-opening of the 950-room Queen Elizabeth and the opening of three new hotels in 2018, the room supply increased by 7.7% that year. However, given a slow convention year, demand increased by just 1.9%, which negatively affected market-wide RevPAR through a drop in occupancy. The market fundamentals have remained strong and in spite of the weaker performance market values increased by 13.3%. Montreal continues to garner significant international interest from an investment perspective which was not always the case in the past.

Despite many major public infrastructure projects coming to an end, the city’s GDP is projected to advance by 3.0% in 2019 and by 1.8% in 2020.  

Six new hotels of varying sizes are expected to open between 2020 and 2021, including the Autograph Collection Montreal Downtown and a Hyatt Hotel. This will lead to an overall 8.0% contribution to supply which the market will take some time to absorb as it continues to push average rates upwards.

Against this backdrop, the per-room value for the Montreal Downtown market increased to $180,300 in 2018, reflecting an increase of 13.3%. This is lower than the 26.1% increase experienced in 2017 but well above previous projections. The room value is expected to rise again in 2019 surpassing the $200,000 mark in 2020 for the first time. With a projected per-room value of $234,100 in 2022, the Montreal Downtown market is expected to occupy sixth position among the 19 major markets which is a marked improvement from fourteenth position 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%

Montreal Downtown RevPAR Change ($CAD)

Montreal Downtown RevPAR ($CAD)

Year RevPAR
2006 $102.15
2007 $97.69
2008 $94.62
2009 $84.27
2010 $97.79
2011 $100.82
2012 $96.56
2013 $104.14
2014 $118.30
2015 $127.98
2016 $139.66
2017 $151.26
2018 $141.01
2019 $148.92
2020 (f) $153.84
2021 (f) $157.30
2022 (f) $165.58

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)
  • +1 514 776-7099 (m)
  • +1 416 704-3883 (m)