Canada -  Regina

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 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. This led to negative GDP growth and an increase in unemployment, although the unemployment rate nonetheless remained below the provincial and national averages.

The output from Regina’s construction sector is projected to grow by 2.5% in 2019, supported by the construction of the $1.9-billion Regina Bypass, which is nearing completion. Output growth in the transportation and warehousing sector is projected to slow over the next two years. The Global Transportation Hub, an inland port, has struggled to meet sales targets, forcing the provincial government to sell it off. In addition, a drop in total net immigration is expected in 2019.

GDP growth resumed in 2017, but this improvement was not immediately transferred to the lodging market. In 2018, demand increased, leading to an increase in RevPAR, following a double-digit drop of in 2017. Consequently, the value per room also increased by 5.9% in 2018, a much needed increase after four consecutive years of decline. With the 23.5% decrease in room value in 2017, 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 local economy continued to recover. For the first time since 2013, the per-room value for the Regina market increased, reaching $95,800. However, this improvement is projected to be short lived: the per-room value is projected to decline by 4.9% in 2019.

As a result of this weak performance, the Regina market will be at the bottom of the value ranking from 2018 to 2021,  with a slight improvement projected for 2022.

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 $61.72
2007 $69.31
2008 $76.48
2009 $78.78
2010 $80.62
2011 $87.54
2012 $91.52
2013 $98.74
2014 $88.06
2015 $78.36
2016 $73.85
2017 $66.17
2018 $70.16
2019 $66.77
2020 (f) $70.13
2021 (f) $73.00
2022 (f) $76.56

For more information, please contact:

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