Canada -  Saskatoon

SASKATOON, is home to the world’s largest potash producer, PotashCorp. 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 city’s construction sector experienced a decline in output in 2018, but the level of construction activity is expected to remain high. The $300-million residential and commercial project on Parcel Y at River Landing is still under construction and scheduled for completion in 2021, and work on the $18-million refurbishment of Saskatoon’s John G. Diefenbaker Airport to increase capacity and modernize technology is likely to be completed by the end of this October. GDP decline of 0.2% is projected for Saskatoon in 2019.

Since 2015, Saskatoon has suffered from the oil crisis, which led to a drop in both demand and room rates. Since 2017, the economy has been slowly recovering.

Demand has been slowly increasing, and it is expected to grow at a stronger pace of 6.0% in 2019 resulting in the strongest RevPAR growth since 2012. In spite of the stronger demand, supply is projected to outpace it resulting in a marginal decrease in RevPAR projections for 2020.

The per-room value for the Saskatoon market is expected to increase in 2019, reaching $107,300. Saskatoon is the only resource-based market in Canada that is projected to see a positive increase in room value in 2019. Additional value growth is projected in 2021 and 2022. By 2022, the value per room for Saskatoon is projected to be $117,600. Despite the improvement, this value is still lower than the 2011 level, putting the market near the bottom of the ranking, three positions above Regina. The fact that the two major cities in Saskatchewan occupy the fifteenth and eighteenth 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 lodging markets.

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 $65.39
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 (f) $76.99
2021 (f) $79.30
2022 (f) $82.60

For more information, please contact:

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