Canada -  Ottawa-Gatineau

OTTAWA-GATINEAU, as Canada’s Capital Region, is mainly driven by the public administration sector, which accounts for one-fifth of jobs in the region and one-fourth of the GDP. The economy is nevertheless well balanced, supported by the stability of government employment and the advanced technology sector, which is now more diversified than it was in the past.

As the national capital, the celebration of Canada 150 resulted in a surge in visitation in 2017, bringing 1.5 million additional visitors to the city. This helped to spur a relatively strong 3.1% increase in GDP that year. For 2018, GDP growth is projected to moderate to 2.2%, supported by more hiring in the public administration sector and new spending measures.

Lodging demand increased by 6.0% in 2017, and hoteliers leveraged the increase in demand to raise room rates. The market-wide ADR increased by 9.6%, yielding a 14.3% improvement in RevPAR. Following the strong growth in 2017, the market has normalized in 2018 with minimal growth being registered. 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 no change in the room count for 2018.

Five new hotels are expected to enter the market in 2019: the Glo Hotel Kanata Ottawa West, the Holiday Inn Express & Suites Ottawa, the Hilton Garden Inn & Homewood Suites, the Wingate Kanata, and the newly opened Fairfield Inn & Suites Ottawa Airport. These hotels will add 823 new rooms to the market, reflecting an 8.0% increase in supply. The room count is expected to continue growing in the years that follow, inducing demand into the market. Demand is projected to grow by 5.0%, 4.0%, and 3.0%, respectively, over the next three years, boosted by the $5.1-billion LRT project and the $3-billion Parliament Buildings renovation project.

The value per room for 2017, which had been estimated at $151,712 in the previous HVI, actually reached $159,683, representing the first double-digit growth for the market since 2010. More moderate growth of between 2.2% and 7.8% is projected over the next four years. The index is projected to be just shy of 2 in 2021, meaning that a hotel located in Ottawa-Gatineau that year will be worth almost twice as much as a similar hotel in Canada was worth in 2005. Despite this improvement, Ottawa-Gatineau is projected to fall from fourth-highest per-room value in 2017 to seventh in 2021; this is an effect of 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 $89.37
2007 $93.98
2008 $96.03
2009 $89.73
2010 $91.70
2011 $96.36
2012 $97.38
2013 $95.23
2014 $100.92
2015 $109.90
2016 $113.71
2017 $129.71
2018 (f) $128.54
2019 (f) $128.72
2020 (f) $130.46
2021 (f) $133.35

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)