For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
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2019
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2018
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2013
TORONTO DOWNTOWN is the heart of Toronto, which is the capital of Ontario and the largest city in Canada. More than 6 million people live in the Greater Toronto Area (GTA). Toronto’s economy is driven by many different sectors, including finance, technology, healthcare, and tourism. The city is home to major banking headquarters for the “Big Five”: BMO, Scotiabank, CIBC, RBC, and TD Bank. It is also home to major corporate headquarters for such companies as Google, IBM, Microsoft, Amazon, Apple, Magna, General Motors, PayPal, and Deloitte. A thriving tech industry and world-renowned academic institutions also make major contributions to the Toronto economy.
Toronto is a popular destination for new immigrants, and population growth continues to support the growth of Toronto’s economy. Toronto also has a thriving arts, sports, and entertainment scene.
The US tariffs are putting stress on trade-dependent manufacturers, including those making transportation equipment, food and beverages, and machinery. The real GDP in Toronto is projected to grow by 1.1% in 2025, which is higher than the national and provincial projected levels. The FIFA Men’s World Cup games that Toronto is scheduled to host next year are expected to not only temporarily boost hotel demand and ADR in 2026, but also create a lasting legacy effect for the city’s tourism sector, as has been observed in other international host destinations.
Given the high cost of land and construction, this market presents high barriers to entry for hoteliers. As a result, the market is experiencing a slight compression in cap rates and therefore upward pressure on hotel values.
Between 2025 and 2028, 1,967 rooms are projected to enter the market. The per-room value is projected to reach $693,500 by 2028. The ranking for this market is projected to remain stable through 2028, when the HVI value is projected to reach 7.04, making Toronto Downtown the second-most-valuable market in the country, just behind Vancouver Downtown.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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