Canada -  Ottawa-Gatineau

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2016 | 2015 | 2014 | 2013

As Canada’s Capital Region, OTTAWA-GATINEAU has a significant service sector, which includes public administration. Last year, the public administration sector generated almost one-third of the region’s GDP. However, this sector is expected to slow down this year, giving way to the expansion of other service sectors, such as finance, insurance, and real estate.

The region’s tech sector is expected to generate new jobs.  Blackberry’s $350-million autonomous vehicle project at the company’s Kanata campus is expected to create more than 750 jobs, and the Ottawa branch of SurveyMonkey is expected to add new jobs over the next year. Overall, the economy is projected to create 9,500 net new jobs in 2019 and 2020, although local GDP growth is projected to cool down to 1.6% this year.

Lodging demand in the Ottawa–Gatineau market decreased slightly in 2018 leading to a decline in RevPAR. In terms of supply, the closure of the 218-room Extended Stay Canada Ottawa Downtown was offset by the opening of three new hotels (the Homewood Suites Kanata, the Homewood Suites Ottawa Airport, and the Hotel Le Germain), resulting in a 1.2% increase in the room supply for 2018. As for 2019, three new hotels have opened, including the Holiday Inn Express and a dual branded Hilton Garden Inn/Homewood Suites which opened at the end of 2018 and one is slated to open in November 2019.

Seven new hotels are in the pipeline for 2021. These hotels will add approximately 995 new rooms to the market, reflecting a 6.1% increase in supply. The room count is expected to continue growing in 2022, inducing demand into the market as this market has significant unaccomodated demand. Occupancy is projected to decrease slightly as the market absorbs the new supply.

In 2018, the value per room for Ottawa–Gatineau, which had been estimated at $166,600 in the previous HVI, actually reached $171,800, representing an increase of 7.6% for the market. More moderate growth of 2.0% and 5.7% is projected for 2019 and 2020, respectively. Despite this improvement, Ottawa–Gatineau is projected to fall from seventh -highest per-room value in 2018 to ninth in 2022; this is an effect of Ottawa being a steady government based market and markets in larger urban centres growing at a faster pace.

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%

Ottawa-Gatineau RevPAR Change ($CAD)

Ottawa-Gatineau RevPAR ($CAD)

Year RevPAR
2006 $89.32
2007 $93.98
2008 $95.99
2009 $89.77
2010 $91.77
2011 $96.36
2012 $97.38
2013 $95.22
2014 $100.92
2015 $109.90
2016 $113.71
2017 $129.71
2018 $125.89
2019 $125.34
2020 (f) $129.45
2021 (f) $129.32
2022 (f) $131.72

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)