For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2024
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2017
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2015
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PRINCE EDWARD ISLAND Canada’s smallest province with only 5,700 square kilometres, has a population of 180,070, making it the most densely populated province in Canada.
The major industries in PEI are bioscience, renewable energy, information and communication, aerospace and defence, agriculture, fisheries, manufacturing, and tourism. The economy of PEI has been on a healthy growth trajectory since 2020. The provincial real GDP is expected to grow by 1.7% in 2025, reflecting a moderation from the strong growth of 3.6% registered in 2024.
Various major capital investments are supporting economic growth in PEI. Over the next ten years, there will be $91.7 million invested into the PEI school system. In addition, more than $88.5 million is being put into the healthcare system over the next four years, encompassing various projects. Another major development in PEI is the rapid increase in home-building activity.
The PEI government is investing in the modernization of the island. New cell towers will be built to fill in the service gaps, and a self-service portal is being developed to create a central online hub for government services, offering residents easy access to timely and important information. These initiatives are all efforts to keep up with the growing demand for services in PEI.
PEI’s unemployment rate was 8.2% as of May 2025, which reflects a 0.9% increase from May 2024.
In 2023, the market-wide RevPAR surpassed pre-pandemic levels, supported by strong tourism activity. There was a drop in 2024 reflecting normalization, and in 2025, with Canadian “elbows up” domestic travel resilience, the RevPAR is expected to increase significantly, by 11.7%, mainly because of increased ADR. Steady growth is projected for the remainder of the projection period. Between 2025 and 2028, 170 rooms are expected to enter the PEI market.
The per-room value for the Prince Edward Island market is projected to increase over the next few years. From $162,900 in 2025, the per-room value is projected to rise to $195,600 by 2028. The index value reflects this upward trend with an increase from 1.65 in 2025 to 1.99 in 2028.
Prince Edward Island is projected to remain in fifteenth position through 2028. The market is growing, but other markets are expanding at a comparable pace, leaving its relative rank unchanged.
It should be noted that the PEI market was only included in the HVI as of 2024.
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.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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