For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2025
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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
NIAGARA FALLS REGION, the honeymoon capital of Canada, is situated in Southeastern Ontario near the US border; its grand attraction is the Horseshoe Falls. The population of Niagara Falls was 105,350 in 2024.
Because of the proximity to Toronto and the US border, Niagara Falls sees nearly 14 million visitors every year. After years of pent-up travel demand during the pandemic, the region experienced a normalization of leisure demand in 2024 as the discretionary spending of Canadians decreased. Government contracts that were in place to temporarily house new immigrants to Canada also came to an end, causing a decline in hotel demand in both 2024 and 2025.
Given the proximity of Niagara Falls to the US border, the strained trade relationship between Canada and the US, along with the resulting economic uncertainty, is negatively affecting visitation. This market also depends heavily on leisure demand, which tends to be impacted first during periods of economic volatility given the discretionary nature of leisure travel. Overall, the decline in US visitation, combined with the slow recovery of international tour bus demand, has contributed to the recent softness in market performance.
Between 2025 and 2028, 1,300 hotel rooms are proposed for development in the Niagara Falls market. How many of these projects will ultimately materialize remains uncertain given the region’s history of dormant developments, but the overall sentiment toward new hotel construction in Niagara Falls remains positive, supported in part by the new hotel gaming licences that OLG is expected to issue. Moreover, this projection does not include some large projects, representing 1,000 rooms in total, planned by developers for 2029 and 2030.
The Niagara Falls market experienced robust year-over-year growth in per-room value up until 2019, with an average annual increase of 9.9% from $90,400 in 2005 to $207,900 in 2024.
The ranking of the Niagara Falls lodging market is expected to fluctuate over the next few years. The market is projected to finish 2025 in ninth position and be in eleventh spot in 2028 with an HVI of 2.45.
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.
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