Canada -  Montreal Downtown

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 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.

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%

For more information, please contact:

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