For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2019
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2018
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2017
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2016
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2015
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2014
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2013
MONTREAL DOWNTOWN is supported by a robust and expanding finance, insurance, and real estate sector, as well as the public administration and educational services sectors. The 67-kilometre Réseau Express Métropolitain Light Rail Train (LRT) project is supporting growth in the construction industry. Montreal’s GDP grew by 3.0% in 2019, marking the city’s third consecutive year of GDP growth at or above 3.0%. Moreover, the city was the leader in growth among all the major metropolitan areas in Canada in 2019, and the city’s downtown hotels also performed well.
COVID-19 is causing a major disruption to business and travel patterns in the city. The near-term outlook for the market area is negative because of the ongoing pandemic. In response to the travel restrictions and the decline in demand associated with the closure of all non-essential businesses to stop the spread of the virus, most hotels in Montreal’s downtown have suspended operations, and the few that have remained open are running occupancy levels in the single digits. During these suspensions, hotels are typically closed to the public and they accommodate primarily emergency services and healthcare workers. Hotels in the city are expected to re-open as soon as pandemic-related restrictions are lifted and demand recovers.
The drop-off in demand has affected the entire industry, however, hotels relying on group and convention demand, such as most of full-service downtown properties, have been hit the hardest. Against this backdrop, we anticipate a significant decline in Montreal Downtown’s hotel values this year. The values are expected to moderately rise in 2021, as the commercial and leisure travel, and the meeting and group demand resume after the pandemic has run its course.
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:
|
| ADR Change
|
| Market Demand Change
|
| Hotel Occupancy Increase/Decrease
|
| RevPAR Change
|
| Market Supply Growth
|
Change In Value For Market:
($CAD)
Legend
| Significant Value Increase:
|
Greater than +10%
|
| Moderate Value Increase:
|
Between +3% and +10%
|
| Stable Values:
|
Between -3% and +3%
|
| Moderate Value Decline:
|
Between -3% and -10%
|
| Significant Value Decline:
|
More than -10%
|
Montreal Downtown RevPAR Change
($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 |
$153.84
|
| 2021 |
$157.30
|
| 2022 |
$165.58
|
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