For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2019
|
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
NEW BRUNSWICK, the largest of the three Maritime Provinces, is situated on the eastern coast of Canada. The three main urban centres—Fredericton, Saint John, and Moncton—have service-based economies in which healthcare, education, retail, finance, and insurance are the predominant sectors. The rural primary economy involves forestry, mining, mixed farming, and fishing. According to the Conference Board of Canada, New Brunswick sustained GDP growth of 1.4% in 2019.
As the COVID-19 pandemic is hitting hard the provincial economy this year, Conference Board of Canada projects a contraction in the provincial economy by the end of 2020. New Brunswick’s measures to stop the virus spread include school closures, and the closures of most non-essential businesses, including the tourism-related, food services and accommodation, and recreation businesses, which are expected to be hit the hardest by these measures. On the bright note, the province’s health care sector makes up a larger-than-average share of the local economy, and this is one of the few industries that will see a boost in activity over the next few months, as well as help to support the lodging industry by accommodating healthcare workers and patients at the local hotels.
As a result of the COVID-19 pandemic, demand is expected to plummet this year, particularly in the leisure and group travel, driving a significant decline in the hotel values. A moderate recovery in hotel values is anticipated in 2021.
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:
($CAD)
Legend
| Significant Value Increase:
|
Greater than +10%
|
| Moderate Value Increase:
|
Between +3% and +10%
|
| Stable Values:
|
Between -3% and +3%
|
| Moderate Value Decline:
|
Between -3% and -10%
|
| Significant Value Decline:
|
More than -10%
|
New Brunswick RevPAR Change
($CAD)
New Brunswick RevPAR
($CAD)
| Year |
RevPAR |
| 2006 |
$64.70
|
| 2007 |
$67.07
|
| 2008 |
$65.10
|
| 2009 |
$62.49
|
| 2010 |
$63.00
|
| 2011 |
$62.30
|
| 2012 |
$59.94
|
| 2013 |
$61.29
|
| 2014 |
$62.59
|
| 2015 |
$65.30
|
| 2016 |
$69.71
|
| 2017 |
$75.01
|
| 2018 |
$76.39
|
| 2019 |
$78.68
|
| 2020 |
$80.39
|
| 2021 |
$82.53
|
| 2022 |
$85.96
|
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