Canada -  Saskatoon

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HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 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.

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)