For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
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2018
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MONTREAL DOWNTOWN has a diverse economy that ranges from creative industries to aerospace, technology, and commerce. Known for its cultural vibrancy and rich heritage, the city also stands as a pivotal centre for education and research, as it houses prestigious academic institutions that foster innovation and economic development. Furthermore, Montreal plays a key role in the video game and digital entertainment industry, drawing talent and investments from around the globe.
Montreal’s real GDP grew by 1.0% in 2024, matching the provincial growth rate. From 2025 onward, the city is projected to outpace the province in GDP growth. Growth is projected at 1.5% in 2025 and at an annual average rate of 2.0% from 2026 to 2028. Montreal’s manufacturing sector faces risks from US tariffs, which may leave certain manufacturers no choice financially but to relocate to the US. Service-producing industries grew by 1.6% in 2024, with healthcare and education seeing the strongest gains.
Montreal's population grew by 2.7% in 2024; however, growth is expected to slow in response to new federal and provincial restrictions on immigration. The population is now projected to grow at an average annual rate of just 0.3% from 2025 to 2028. The unemployment rate rose to 6.3% in 2024 but is projected to fall to 4.7% by 2028. The number of jobs in the goods and services sector, including retail trade, is falling; however, the number of jobs in healthcare and the professional, scientific, and technical services sector has registered slight growth and is projected to expand steadily through 2028.
From 2025 to 2028, 796 rooms are expected to enter the Montreal Downtown market. In 2025, the market is expected to finish with a 2-percentage-point decline in occupancy. This period nonetheless reflects a strong rebound in the market, as hoteliers have put an emphasis on rate integrity; the market-wide ADR is expected to grow 5.0% by the end of 2025, albeit with slightly lower occupancy. Montreal has always had a lower average room rate than Toronto and Vancouver, and hoteliers are trying to close this gap with the recent entrance of new, significantly higher quality independent and branded supply.
The per-room value for Montreal Downtown has increased significantly since 2019, primarily because of the rise in ADR. For 2025, the HVI is estimated to be 2.86, and the per-room value is projected to reach $282,100, reflecting substantial year-over-year growth. The ranking of Downtown Montreal is expected to remain stable in fifth position throughout the projection period, with an HVI of 3.59 in 2028.
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.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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