Canada -  Quebec City

QUEBEC CITY is the provincial capital and so benefits from the presence of a large and stable administration sector. According to the Conference Board of Canada, the city’s GDP is projected to increase by 2.3% in 2018 and 2.0% in 2019, fuelled by service-producing industries and high-tech companies, which together provide 87% of the jobs in the region and generate 80% of the GDP. Quebec City is one of the few cities in the country that manages to have balanced books. The unemployment rate is one of the lowest in the country and is projected to remain around 4.0% over the next four years, thanks largely to job expansion in information and cultural industries.

The Quebec City lodging market has been fairly stable from the perspective of supply. No new supply entered the market in 2018, and the only anticipated supply changes are the renovation of the Hotel Le Priori, which suffered a fire in 2017, and the year-long renovation of the 571-room Hilton Quebec that is planned for 2020.

In 2017, Montreal’s 375th anniversary celebrations boosted demand in Quebec City by 4.6% and prices by 3.7%, leading to a 7.6% increase in RevPAR compared to 2016. In the light of this, the value per room increased by 21.6% in 2017, far above the increase of 4.6% that had been projected for this year in the previous HVI report. This puts Quebec City into tenth place in the ranking, up seven positions from 2016.

Lodging demand is projected to grow at a stable rate of 3.0% in both 2018 and 2019, but flat growth is projected for 2020 because of the temporary closure of the Hilton Quebec. 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, which is projected to grow from $120 in 2017 to $127 in 2018. RevPAR growth is expected to continue through to 2021 at a compound annual rate of approximately 5.0%.

In terms of value per room, another strong increase of 9.6% is projected for 2018, and similar growth is projected the two years that follow. The projected value of $186,355 per room in 2021 positions Quebec City in ninth place in the ranking.

Change In Value For Market: ($CAD)

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 $88.27
2007 $87.14
2008 $109.92
2009 $84.33
2010 $88.10
2011 $93.58
2012 $95.11
2013 $90.61
2014 $99.86
2015 $103.08
2016 $111.28
2017 $119.93
2018 $127.05
2019 (f) $134.21
2020 (f) $145.59
2021 (f) $148.39

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)