Canada -
Newfoundland and Labrador
For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2025
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2024
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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’S produces 12% of Canada’s conventional light crude from four offshore production facilities: Hibernia, Terra Nova, White Rose, and Hebron. Business investment forecasts are optimimistic as many companies are moving forward with their projects. Construction is wrapping up at the Muskrat Falls hydroelectric project, and real business investment looks bright. New investments in the expansion of the Voisey’s Bay Mine in Labrador and increasing production at the Hebron offshore oil field will help the provincial economy grow this year. Because of the increase in oil production, real GDP growth is projected to finish 2025 at 2.1%.
The lodging market has shown strong recovery from the pandemic, supported by demand from Immigration Canada government contracts. Occupancy is projected to fall slightly in 2025 and gradually increase by 2028 as the market absorbs a small amount of new supply. Between 2025 and 2028, 158 rooms are expected to enter the market.
The Newfoundland and Labrador market experienced a decline in per-room value from 2014 to 2019. This market is very dependent on natural resources and follows the same demand trends as Western Canadian provinces that are oil dependent. The ADR is growing slowly, and occupancy is holding steady as tourism in Newfoundland is on the rise.
The per-room value is now projected to continue trending upward, reaching $139,200 in 2025 and $168,300 in 2028. The HVI is projected to reflect this positive trend, rising steadily from 1.41 in 2025 to 1.71 in 2028. The province is expected to be in eighteenth position in 2028.
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:
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| ADR Change
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| Market Demand Change
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| Hotel Occupancy Increase/Decrease
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| RevPAR Change
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0.0%
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0.0%
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
($CAD)
Legend
| Significant Value Increase:
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Greater than +10%
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| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Newfoundland and Labrador RevPAR Change
($CAD)
Newfoundland and Labrador RevPAR
($CAD)
| Year |
RevPAR |
| 2006 |
$72.96
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| 2007 |
$78.02
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| 2008 |
$83.30
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| 2009 |
$84.25
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| 2010 |
$91.50
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| 2011 |
$97.08
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| 2012 |
$102.03
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| 2013 |
$107.55
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| 2014 |
$104.27
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| 2015 |
$97.55
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| 2016 |
$92.45
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| 2017 |
$91.78
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| 2018 |
$75.86
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| 2019 |
$72.23
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| 2020 |
$75.52
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| 2021 |
$78.92
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| 2022 |
$82.43
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| 2023 |
$
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| 2024 |
$
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| 2025 (f) |
$
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| 2026 (f) |
$
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| 2027 (f) |
$
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| 2028 (f) |
$
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