For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013

TORONTO DOWNTOWN is a vital financial and technological hub for Canada; 38% of corporate headquarters in Canada are in Downtown Toronto. The city’s real GDP advanced by 1.6% in 2019, which was among the slowest growth rates the city has seen since 2009. The slower growth was a result of a weakening manufacturing sector, a cooling housing market, and a substantial decline in housing starts. Investment in the city’s infrastructure has however been particularly strong, with the ongoing work on the $5.3-billion Eglinton Crosstown LRT line, the $640-million expansion of Highway 401, and the $823-million revitalization and expansion of Toronto’s Union Station. Construction activity also remains vibrant in the office sector, with construction continuing the $2-billion, 2.7-million-square-foot bus terminal and office project named CIBC Square. The city’s real GDP was expected to grow at a stronger pace in 2020 before the COVID-19 pandemic came to be.

As the global economy comes to a grinding halt, Ontario’s real GDP is forecast to decline this year, before rebounding next year. Almost all industries are being affected in the nation, especially lodging, food service, airline, and retail sectors. However, given the dense population in Toronto Downtown, goods delivery is easier and consumer spending is expected to be stronger than other regions. Business professionals have also been able to work remotely under current social distancing measures.

The travel restrictions and limited business activities are having an unprecedented impact on the hotel sector. Hotel properties in the urban cores are expected to see a greater and longer impact, given their dependence on large conventions and international travellers. Toronto Downtown’s occupancy has been strong, with continued year-over-year ADR growth. Many hotels in Toronto Downtown have suspended operations as a result of the COVID-19 pandemic. 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.

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)

Toronto Downtown RevPAR Change ($CAD)

Toronto Downtown RevPAR ($CAD)

For more information, please contact:

Monique Rosszell, AACI, MRICS, ISHC Senior Managing Partner, AACI, Montreal and Toronto [email protected] +1 416 686-2260 (w) +1 514 776-7099 (m) +1 416 704-3883 (m)