Canada -  Toronto Airport West

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The TORONTO AIRPORT WEST lodging market is anchored on Toronto Pearson International Airport, which is located in Mississauga and acts as the primary airport for the Golden Horseshoe, Canada's largest urbanized area. Toronto Pearson is the largest and busiest airport in Canada. Renovations are underway to allow the airport to accommodate 50 million passengers a year, which is expected to be a reality by the end of this year. In 2018, the passenger count reached 49.5 million, making the airport a mega hub. Last year, new flights to Kiev, Bucharest, Porto, and Zagreb were initiated.

With the increase in passenger counts due to airport renovations in 2017, lodging demand grew by 2.3% in 2018 and is expected to remain stable in 2019 before gradually increasing over the next three years. Because almost no new supply has entered the market since 2014, the increase in demand is putting upward pressure on room rates. The market-wide ADR grew significantly in 2018, and it is expected to moderate it’s growth this year, allowing the market to surpass the $100 RevPAR mark for the third consecutive year. The new hotels that are in the pipeline for 2020 and 2021 include the Hyatt Place Toronto Airport, the Tru by Hilton Toronto Airport, the Element Toronto Airport, and a Holiday Inn Express. These developments will bring more than 10% new rooms to the market. Given the strength of the marker we expect the new supply will be absorbed quite rapidly based on the growth in passenger counts at the airport.

The strong growth in this market will have a positive effect on the value per room, which is projected to reach $211,000 in 2019, a 15.9% increase, which is healthy but modest relative to the 25.2% increase registered in 2018. More modest growth of 5.1% is projected for the per-room value in 2020 as new supply is absorbed. The value per room has more than tripled over the past ten years, as much of the supply has been renovated and up-branded and lower rated demand pushed to the outlying markets. Market values are expected to reach $257,100 by 2022.

This strong growth will position the market in fourth place in 2022, sneaking in ahead of Victoria and one spot behind the Vancouver Airport market.

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 $79.88
2007 $75.95
2008 $78.15
2009 $64.52
2010 $70.54
2011 $69.25
2012 $69.72
2013 $71.38
2014 $76.22
2015 $82.39
2016 $92.41
2017 $103.99
2018 $115.54
2019 $116.70
2020 (f) $119.19
2021 (f) $120.61
2022 (f) $123.44

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC
[email protected]
  • +1 416 686-2260 (w)
  • +1 514 776-7099 (m)
  • +1 416 704-3883 (m)