For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2019
|
2018
|
2017
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2016
|
2015
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2014
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2013
SASKATOON is home to the world’s largest potash producer, Nutrien. The region is known for its natural resources, mainly potash, oil, and wheat. Canola crop sales crashed after China cancelled export licences for Richardson International and Viterra, claiming pest infestation. Alternative buyers have been hard to find, and the local economy has suffered as a result.
The economic outlook for Saskatoon is unfavourable at this time. The city and the province are facing a deep recession, mainly due to the coronavirus pandemic. The emergency measures put in place and stay-at-home orders to contain the virus’s spread are devastating for the Saskatoon hotel sector. In addition, 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. The potash sector is dealing with a low price environment, which has resulted in plant shutdowns and a decrease in production.
The pandemic will undoubtedly have a negative impact on 2020 hotel values resulting in significant value decreases, returning to moderate growth in values by 2021.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
|
| ADR Change
|
| Market Demand Change
|
| Hotel Occupancy Increase/Decrease
|
| RevPAR Change
|
| Market Supply Growth
|
Change In Value For Market:
($CAD)
Legend
| Significant Value Increase:
|
Greater than +10%
|
| Moderate Value Increase:
|
Between +3% and +10%
|
| Stable Values:
|
Between -3% and +3%
|
| Moderate Value Decline:
|
Between -3% and -10%
|
| Significant Value Decline:
|
More than -10%
|
Saskatoon RevPAR Change
($CAD)
Saskatoon RevPAR
($CAD)
| Year |
RevPAR |
| 2006 |
$65.39
|
| 2007 |
$79.44
|
| 2008 |
$92.81
|
| 2009 |
$95.28
|
| 2010 |
$99.60
|
| 2011 |
$97.39
|
| 2012 |
$103.63
|
| 2013 |
$106.15
|
| 2014 |
$105.23
|
| 2015 |
$92.59
|
| 2016 |
$78.47
|
| 2017 |
$75.39
|
| 2018 |
$75.10
|
| 2019 |
$77.71
|
| 2020 |
$76.99
|
| 2021 |
$79.30
|
| 2022 |
$82.60
|
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