Canada -  Newfoundland and Labrador

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

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)