Canada -  Quebec City

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

The economy of QUEBEC CITY is heavily oriented towards services, which account for most of the area’s employment and GDP. According to the Conference Board of Canada, its real GDP is projected to grow by 2.5% in 2019 and by 1.7% the following year. The transportation and warehousing sector is expected to expand, supported by output growth in the manufacturing and construction sectors, which are the biggest users of transportation services. Several big projects are under construction, including a $2-billion hospital complex and Medicago’s $245-million commercial vaccine-production facility. Work related to these projects is expected to help the overall growth of the economy. The upcoming projects include the long-awaited $755-million Phare de Quebec development and the construction of a tramway and trambus network in the city; these projects are expected to begin work later this year and in 2022, respectively.

The Quebec City lodging market has been fairly stable from the perspective of supply. The only new supply entering the market in 2019 was the Hampton Inn & Suites Beauport and The Capitole de Quebec. Going forward, the only anticipated supply changes are the renovation of the Hotel Le Priori, which suffered a fire in 2017 and reopened in 2018. Hotel Clarendon also suffered a fire in January 2019 and following major renovations, reopened in December 2019. There will also be a  year-long closure and  renovation of the 571-room Hilton Quebec that is planned for 2020.

In 2017, Montreal’s 375th anniversary celebrations helped Quebec City realize a 7.6% increase in RevPAR. In 2018, the market performed equally well—both demand and room rates increased, resulting in RevPAR growth of over 5.0%. In June 2018, Quebec City acted as a lodging alternative for Charlevoix while the G7 Summit took place. As a result of this event, approximately 6,000 room nights were generated between May and mid-June. The ADR increased in response to the higher occupancy levels. Overall, this event had a very positive effect on the market-wide RevPAR.

The value per room in 2018 rose by 14.9%, given the strength of the market with little new supply on the horizon.

In terms of value per room, a more modest increase of 3.6% is projected for the Quebec City market in 2019. The projected value of $188,800 per room in 2022 moves Quebec City into eight place in the ranking, a notable change from fifteenth place ranking in 2014.

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%

Quebec City RevPAR Change ($CAD)

Quebec City RevPAR ($CAD)

Year RevPAR
2006 $88.22
2007 $87.14
2008 $109.85
2009 $84.32
2010 $88.17
2011 $93.58
2012 $95.11
2013 $90.55
2014 $99.81
2015 $103.08
2016 $111.28
2017 $119.93
2018 $126.09
2019 $128.96
2020 (f) $135.43
2021 (f) $135.82
2022 (f) $142.28

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)