Canada -  Toronto Airport West

The TORONTO AIRPORT WEST lodging market is strongly influenced by the presence of Toronto Pearson International Airport, which is located in Mississauga and acts as the primary airport for the Golden Horseshoe. Pearson is the largest and busiest airport in Canada. Renovations are underway with the objective of making the airport able to accommodate 50 million passengers a year by 2020. In 2017, the airport’s air capacity increased through new routes to Mumbai, Berlin, and Reykjavik, as well as more flights to the US, Montreal, and Moncton. The Toronto Airport West lodging market also relies on the strong business activity that takes place in the area surrounding the airport, supported by the presence of two major convention centres, the Metro Toronto Convention Centre and the International Centre.

Following the airport renovations in 2017, demand is projected to grow at an annual rate of 3.0% over the next four years. Because almost no new supply has entered the market since 2014, the exception being some minor conversions and renovations, the increase in demand is putting upward pressure on prices. The market-wide ADR grew by 11.6% in 2017, and it is expected to grow another 8.0% this year, leading to a double-digit increase in RevPAR for the third year in a row. Five new hotels are in the pipeline for 2020 and 2021: two Holiday Inn Express properties, the Hyatt Place Toronto Airport, the Tru by Hilton Toronto Airport, the Element Toronto Airport, and a dual-branded hotel that will be affiliated with both Hyatt Place and Hyatt House. These developments will bring 910 new rooms to the market. However, the new supply will be absorbed almost immediately, and the market-wide occupancy level is expected to remain above 80% throughout this period.

The strong growth in this market will have a positive effect on the value per room, which is projected to reach $181,919 in 2018, a 25.1% increase from 2017. Similar value growth is projected for 2019, followed by more modest growth of 8.7% and 7.8% in 2020 and 2021, respectively. The value per room has more than tripled over the past ten years, and it is expected to reach $260,792 by 2021. This huge increase will position the market in fifth place, two spots behind the Vancouver Airport market. This represents an improvement of three positions from the 2017 ranking.

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%

Toronto Airport West RevPAR Change ($CAD)

Toronto Airport West RevPAR ($CAD)

Year RevPAR
2006 $79.87
2007 $76.01
2008 $78.14
2009 $64.48
2010 $70.59
2011 $69.25
2012 $69.72
2013 $71.39
2014 $76.20
2015 $82.39
2016 $92.41
2017 $103.99
2018 (f) $115.68
2019 (f) $126.29
2020 (f) $133.44
2021 (f) $138.04

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)