Canada -  Quebec City

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HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013

The economy of QUEBEC CITY is heavily oriented towards services, which account for most of the area’s employment and economic activity. According to the Conference Board of Canada, the area’s GDP advanced by 2.1% in 2019. The local economy has benefited from the goods-producing industries, and the manufacturing and construction sectors, supported by improvement in local productivity and the diversification of companies, as well as investments in residential and non-residential projects. Several of these big projects include the $775-million deep-water container terminal at the Port of Quebec scheduled for 2021 construction, and Medicago’s $245-million commercial vaccine-production facility in the Estimauville Innovation Area, a project that broke ground in 2018. In addition, work on Quebec City’s $3.3-billion tramway system is schedule to break ground in 2022.

The Quebec City lodging market has been fairly stable from the perspective of supply over the recent years and the city’s RevPAR has also remained quite stable.

Quebec City’s measures to stop the COVID-19 virus spread include closures of most non-essential businesses, including the food services and accommodations, and other tourism-related businesses, which are expected to be hit the hardest by these measures. Festivals have been cancelled and shuttering of all cruise activity will have a significant impact on hotel demand. The local hotels are already seeing a sharp erosion of both demand and average rate due to the ongoing pandemic. The economic downturn and the decline in performance for the city’s hotels caused by the COVID-19 pandemic will have a significant negative impact on hotel values this year. As borders re-open to international travellers, tourism and cruise ship activity slowly resumes, and the meetings and conferences get rescheduled for 2021, we expect a moderate recovery in hotel values next year.

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%

For more information, please contact:

Monique Rosszell, AACI, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)
  • +1 514 776-7099 (m)
  • +1 416 704-3883 (m)