Canada -  New Brunswick

NEW BRUNSWICK is the largest of the three Maritime Provinces and home to three major cities: Fredericton, Saint John, and Moncton. Historically, the province relied upon mining activity. This sector is still active with the opening of new, smaller mines, but the economy is now more diversified, having moved into new sectors, such as retail and services, tourism, forestry, and industrial fabrication. Seafood exports to Asia are expected to increase, and new export opportunities are being developed with Europe within the framework of the Canada-European Union Comprehensive Economic & Trade Agreement (CETA).

According to the Conference Board of Canada, the province’s GDP is expected to increase for the fifth time in a row in 2018, although at a lower pace than in 2017. The slowdown in growth is largely due to the completion of the Kedgwick Transmission Line, which was a major project in the province. New Brunswick has struggled to maintain its population and has turned to immigration to offset the effects of the aging population and the migration of young workers to other provinces with better job opportunities.

The opening of the new 9,000-seat events centre in downtown Moncton in September 2018 and a new arena in Edmundston in 2017 is expected to support growth in travel activity in 2018. In 2021, the Games of La Francophonie will be held in Moncton and Dieppe, which will bring more than 3,000 participants from more than 50 member nations.

New supply entered the market in 2018, including the Hilton Garden Inn Fredericton, the Radisson Fredericton, and the Holiday Inn Express & Suites Moncton. In total, 244 new rooms have opened in the New Brunswick market this year. Demand growth is expected to be flat in 2018 following the strong growth that was registered in the two previous years, leading to a decrease in occupancy. Demand growth is projected to resume in 2019, and all the new supply is expected to be fully absorbed by 2021, at which time the occupancy is expected to exceed the 2017 level.

The per-room value for the province is expected to increase by double digits for the third consecutive year in 2018. More moderate growth of between 3.0% and 4.0% is projected for the three years that follow, resulting in an increase in the per-room value from $101,802 in 2018 to $113,495 in 2021. New Brunswick is expected move up to sixteenth place in the value-per-room ranking, up from eighteenth out of 19 in 2017.

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%

New Brunswick RevPAR Change ($CAD)

New Brunswick RevPAR ($CAD)

Year RevPAR
2006 $64.66
2007 $67.04
2008 $65.13
2009 $62.46
2010 $62.96
2011 $62.24
2012 $59.94
2013 $61.34
2014 $62.63
2015 $65.29
2016 $69.71
2017 $75.01
2018 (f) $75.75
2019 (f) $77.87
2020 (f) $79.13
2021 (f) $82.32

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)