Canada -  Regina

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013

REGINA, the capital of Saskatchewan, is dominated by the finance, insurance, and real estate industry. The oil crisis was a major blow to the province’s resource-based economy in 2014 and 2015, and the negative effects were exacerbated by difficulties in agriculture and challenging pricing for potash and uranium.

The years of headwinds for the province's resource industries had a negative effect on the coffers of resource companies and government bodies. During these trying years, the bright spots for the local economy were in the manufacturing and construction sectors. The city saw high activity in infrastructure improvements in 2019, following its $85.3 million investment in road and water projects. The Regina Bypass (the largest infrastructure project in the history of the province) was completed in 2019.

The oil and gas sector has been facing significant headwinds since late 2014.  Since then commodity prices have been volatile, and pipeline constraints have limited the market for oil and gas products.  From 2014 to 2017, Regina experienced significant increase in the number of new hotels, soft demand and declining rates, which resulted significant decline in hotel values.

The current pandemic has significantly increased the volatility with oil prices cratering in response to significantly lower demand prospects owing to spreading global shutdowns and coupled with geopolitical tensions between oil producing nations that began with a price war between Russia and Saudi Arabia. As a result, the prospects for the energy sector are grim even on the other side of the immediate impacts of the pandemic which have been rapid, widespread, and deep. In addition, the potash sector is dealing with a low price environment, which has resulted in plant shutdowns and a decrease in production.

The market will see a decline in values in 2020 as performance metrics across the market collapse and the prospects for recovery being less favourable than other markets due to the volatility and uncertainty in the energy sector and the potash sector, which plays a key role in the Regina economy.

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:

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