Canada -  Victoria

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

VICTORIA is the capital of British Columbia and is located at the southern end of Vancouver Island. It relies heavily on the public sector, which supports one-third of jobs in the region and contributes a quarter of economic activity.

The city has seen strong GDP growth in recent years as the province has been highly prosperous which has driven an expansion of the government, and private sector, and increased consumer confidence and spending. The exchange rate, and cruise port had driven US visitation to new heights, and overseas visitors were key in sustaining both occupancy and rate growth due to their longer stays and lucrative rates.

The market area has benefitted from a contraction in supply over the past decade which coincided with improving economic conditions, and growing leisure travel to the market.  The city has a strong real estate market which has made new supply less of a risk as other asset classes often remain the highest and best use of development sites within the market area and this in turn has supported higher valuations.  The demand in the market had become less seasonal and as peak periods saw demand exceed available supply, operators were able to push room rates to record highs. 

The global pandemic has the city bracing for a disastrous 2020 tourism season.  The city which is accessed by ferry, plane, or cruise ship, owing to its location on Vancouver Island, makes it more susceptible to current travel restrictions and health concerns of travellers.  With demand in free fall, the city will undoubtedly see a significant decline in room rates at the compression that gave operators the confidence to yield room rates to their recent records has disappeared. While the local economy is rooted in relatively stable sectors, particularly government, and supply-risk remains very low, the market will also be impacted by the current pandemic. The market is expected to once more rely much more heavily on domestic markets in 2020 and 2021 as overseas and US markets retreat.  The impact of current events, and the lingering effect they will have on the North American economy will have a lasting effect on the local market and will result in a decline in hotel values in the near term with an eye to recovery in the latter part of the decade.

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%

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
[email protected]
  • +1 604 988-9743 (w)