Canada -  Saskatoon

SASKATOON, the second-youngest city in Canada, has a fast-growing population thanks to Syrian immigration. Saskatoon is home to Nutrien, the world’s largest potash producer, and Cameco Corporation, the largest uranium company in the world. By having a resource-oriented economy, Saskatoon suffered from the 2015 oil crisis. In 2017, weakness in the uranium sector forced Cameco to halt production, resulting in 900 dismissals. Other sectors, such as agriculture, mining, biotechnology, and construction, allowed GDP growth to resume in 2017.

As a consequence of the recession, the RevPAR contracted by 12.1% and 14.8% in 2015 and 2016, respectively. This negative performance was due to a drop in both demand and room rates, combined with a strong increase in supply.

With the recovery, demand growth resumed in 2017 but was not strong enough to offset the 5.4% decline in prices. This situation persisted in 2018 when both a decline in prices and an increase in supply offset the 5.0% increase in demand. The situation is expected to finally reverse in 2019 when 5.0% demand growth and a slower increase in supply are projected to yield positive RevPAR growth. The occupancy level is projected to increase by 2.5 percentage points that year, encouraged by less new supply.

A modest increase in RevPAR is projected for 2020 when supply is projected to grow at a slightly stronger pace than demand, but a stronger 6.1% increase is projected to take place in 2021.

For the first time since 2014, the per-room value is expected to increase in 2019, reaching $105,789. Additional value growth is projected for 2020 and 2021. By 2021, the value per room for Saskatoon is projected to be $113,065. Despite the improvement, this value is still 30% lower than the 2013 level, putting the market near the bottom of the ranking, two positions above Regina. The fact that both the capital of and the largest city in Saskatchewan occupy the seventeenth and nineteenth positions in the value ranking is an indication of how much the decrease in oil prices and the downturn in other commodity markets have negatively affected the province.

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%

Saskatoon RevPAR Change ($CAD)

Saskatoon RevPAR ($CAD)

Year RevPAR
2006 $65.42
2007 $79.46
2008 $92.76
2009 $95.29
2010 $99.66
2011 $97.39
2012 $103.63
2013 $106.17
2014 $105.24
2015 $92.59
2016 $78.47
2017 $75.39
2018 (f) $74.67
2019 (f) $78.25
2020 (f) $78.84
2021 (f) $83.64

For more information, please contact:

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