Canada -  Niagara Falls

NIAGARA FALLS, the “Honeymoon Capital of the World,” is situated on the southeastern part of Ontario that faces the American Bridal Veil Falls and the Canadian Horseshoe Falls. The city is a world-class golf destination and a popular tourist destination, supported by an abundance of attractions, including the Hornblower Niagara cruise, the Journey Behind the Falls, the Niagara Zipline, and the Ripley’s Believe It or Not Museum, as well as hotels, casinos, convention centres, professional golf courses, and family-style resorts. Because of these improvements, Niagara Falls is often called the Las Vegas of Canada.

New projects, such as the $132-million Niagara Falls Entertainment Centre, the new $51-million wastewater treatment plant in Niagara-on-the-Lake, and improvements to Highway 406, are expected to boost the local construction sector and, in the case of the first-named project, also the tourism sector.

Despite the weak Canadian dollar, the growth in the local manufacturing sector is expected to be modest. The Canada–United States–Mexico Agreement (CUSMA) may have lifted the threat of a 25% tariff on vehicle imports, but it is nonetheless expected to raise production costs. Moreover, the demand for vehicles from the United States is slowing down. Since the US is the biggest export market for auto parts and motor vehicles manufactured in Canada, this will greatly affect the manufacturing sector in the Niagara Falls area.

The Niagara Falls lodging market sustained double-digit RevPAR growth in both 2015 and 2016. However, more conservative growth is projected for 2019 following the modest increase registered in 2018. Demand is projected to grow by 1.5% in 2019 and by 1.0% in 2020.

In 2021 and 2022 Niagara Falls is scheduled to see over 900 rooms of new supply enter the market representing over 6.0% new inventory. These new hotels include a 350-room Hyatt Regency and a 150-room Hyatt Centric Hotel.

In 2018, the per-room value for the Niagara Falls market grew by 13.0%, representing the fifth consecutive year of solid growth. Less robust growth is projected for 2019, but the value is projected to grow at a steady rate through to 2022. With the growth in recent years, the Niagara Falls market moved from sixteenth place in the per-room-value rankings in 2014 to eleventh in 2018, and it is projected to move into tenth spot by 2020.

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%

Niagara Falls RevPAR Change ($CAD)

Niagara Falls RevPAR ($CAD)

Year RevPAR
2006 $79.23
2007 $79.31
2008 $77.95
2009 $72.43
2010 $73.14
2011 $73.14
2012 $77.06
2013 $77.98
2014 $84.99
2015 $97.04
2016 $106.65
2017 $110.33
2018 $112.42
2019 $116.52
2020 (f) $121.42
2021 (f) $123.15
2022 (f) $125.25

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)
  • +1 514 776-7099 (m)
  • +1 416 704-3883 (m)