Canada -  Toronto Downtown

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 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 is expected to grow by 2.0% both this year and next. The manufacturing sector is expected to slow down despite the persistence of the weak Canadian dollar. With a decline in housing starts, construction output will remain moderate. The provincial government is undertaking billion-dollar subway extensions and adding the new Ontario Line in the Greater Toronto Area. Tremendous output growth is expected in the information and cultural sector; Amazon plans to hire 600 workers, and Netflix is planning to open a production hub in Toronto. Last year, Pinterest opened its first Canadian office in Downtown Toronto.

In 2018, Hotel X opened with 404 rooms, counterbalancing the loss of two hotels being temporarily closed; the Park Hyatt, which closed for renovation and is expected to re-open in 2020 with a smaller room count of 220, and the temporary closure of the Marriott Bloor, which is under renovation for a conversion to a W Hotel. New hotels are poised to open in the market, including the Canopy by Hilton Toronto Yorkville, the Ace Hotel, and the Andaz Hotel, representing more than 1,000 new rooms in total. Even with this new supply, the market will continue to operate at a high occupancy level, creating many periods when demand cannot be accommodated. This compression is putting upward pressure on room rates. The market-wide RevPAR is projected to exceed the $200 mark for the first time in 2021. In 2022, the Downtown Toronto market will see further occupancy compression with the planned closure of the 1590 room Chelsea Hotel. 

In this dynamic environment, the value per key for Toronto Downtown is projected to increase by 10.8% this year, and close to double-digit value growth is also projected for 2020. For 2021 and 2022, the value is projected to increase by double digits once again with the lack of new supply in the pipeline for downtown Toronto. The value per key is projected to increase from $390,900 in 2019 to $544,300 in 2022. Toronto Downtown is projected to have one of the highest per-room values in the country, second only to that of the Vancouver Downtown market. These high values are driven principally by not only the performance of the hotels but also the high cost and scarcity of available land.

Change In Value For Market: ($CAD)

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 Downtown RevPAR Change ($CAD)

Toronto Downtown RevPAR ($CAD)

Year RevPAR
2006 $118.15
2007 $120.69
2008 $120.99
2009 $99.28
2010 $116.44
2011 $116.16
2012 $119.29
2013 $124.94
2014 $131.24
2015 $141.27
2016 $164.33
2017 $179.51
2018 $192.06
2019 $193.98
2020 (f) $199.14
2021 (f) $203.12
2022 (f) $217.80

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)