Canada -
Newfoundland and Labrador
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
NEWFOUNDLAND AND LABRADOR produces one-third of Canada’s conventional light crude thanks to four offshore production facilities: Hibernia, Terra Nova, White Rose, and Hebron. The province has been in the recovery phase since the oil production declined by over 50% from 2014 to 2015, for structural and operational reasons. In 2019, real GDP for the province advanced by 4.3%, mainly due to the rebound of oil production.
Currently, the province is experiencing a double whammy in terms of the global pandemic coupled with the sharp fall in oil prices. According to Conference Board of Canada, the provincial real GDP is forecast to contract in 2020 and return to positive growth in 2021.
Market-wide RevPAR has been declining since 2014 as demand remained sluggish and supply continued to rise year-over-year. The COVID-19 pandemic has triggered dramatic RevPAR declines for the province this year. The pandemic will undoubtedly have a negative impact on 2020 hotel values resulting in significant value decreases, returning to growth in values by 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:
($CAD)
Legend
| Significant Value Increase:
|
Greater than +10%
|
| Moderate Value Increase:
|
Between +3% and +10%
|
| Stable Values:
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Between -3% and +3%
|
| Moderate Value Decline:
|
Between -3% and -10%
|
| Significant Value Decline:
|
More than -10%
|
Newfoundland and Labrador RevPAR Change
($CAD)
Newfoundland and Labrador RevPAR
($CAD)
| Year |
RevPAR |
| 2006 |
$72.96
|
| 2007 |
$78.02
|
| 2008 |
$83.30
|
| 2009 |
$84.25
|
| 2010 |
$91.50
|
| 2011 |
$97.08
|
| 2012 |
$102.03
|
| 2013 |
$107.55
|
| 2014 |
$104.27
|
| 2015 |
$97.55
|
| 2016 |
$92.45
|
| 2017 |
$91.78
|
| 2018 |
$75.86
|
| 2019 |
$72.23
|
| 2020 |
$75.52
|
| 2021 |
$78.92
|
| 2022 |
$82.43
|
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