Canada -  Regina

REGINA, the capital of Saskatchewan, is home to many head offices and crown corporations, as well as a large public administration sector, but its economy is essentially resource-based with strong roots in agriculture, oil and gas production, and the mining of potash, uranium, kaolin, sodium, sulphite, and bentonite. The oil crisis, combined with difficulties in agriculture and challenging pricing for potash and uranium, led to negative GDP growth in 2014 and 2015, the city’s first experience with recession in the past 20 years. Unemployment increased but nonetheless remained lower than the provincial and national averages.

GDP growth resumed in 2017, but this improvement was not immediately tranferred to the lodging market. In 2017, both demand and ADR contracted, leading to a double-digit drop in RevPAR. Consequently, the value per room fell 23.5% in 2017, a much more severe drop than the decline of 16.8% that had been projected in the previous HVI report. The index fell below 1 for the very first time, meaning that a hotel room in Regina in 2017 was worth less than what a comparable hotel room in Canada was worth in 2005.

In 2018, the economy has continued to recover, supported by such projects as Mosaic Stadium, which features 40,000 seats, and the Regina Bypass Project, which will transform the local transportion infrastructure. For the first time since 2014, the per-room value is expected to increase in 2018, reaching $95,985, which reflects an increase of 6.1% relative to the 2017 level. This growth was supported by the return of demand growth to the market and the absence of any additional supply.

Despite the rebound in 2018, the index is not expected to come back on par with the market before 2020. As a result of this weak performance, the Regina market will be at the very bottom of the value ranking from 2017 to 2021, whereas it had been sixth in 2014 prior to the recession.

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%

Regina RevPAR Change ($CAD)

Regina RevPAR ($CAD)

Year RevPAR
2006 $61.75
2007 $69.26
2008 $76.43
2009 $78.83
2010 $80.65
2011 $87.54
2012 $91.52
2013 $98.74
2014 $88.06
2015 $78.36
2016 $73.85
2017 $66.17
2018 (f) $70.21
2019 (f) $69.51
2020 (f) $74.45
2021 (f) $76.65

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
[email protected]
  • +1 604 988-9743 (w)