Hotel Online  Special Report

June Results Are In And.......
We’re Back!

CANADIAN LODGING OUTLOOK
June 2004 Year-to-Date


The Canadian Lodging Outlook is a joint monthly publication 
of Smith Travel Research and HVS International, 
Vancouver and Toronto, Canada
.
By: Betsy MacDonald, MAI, AACI, RIBC - HVS International - Canada

If the results for the month of June are any indication, we are back on track.

Downtown Toronto saw a 39% increase in rooms demand and a 55% increase in RevPAR.  Occupancy during the month of June was 75.1% at a $165.04 average room rate.

The Alberta Mountain Region reported an increase in demand of 26.2% and a 28.6% increase in RevPAR.  Occupancy was 81.2% at a $298.73 average room rate.  Vancouver had an 18.4% increase in demand, and a 23.6% increase in RevPAR. Occupancy in Vancouver was 80.5% at a $150.92 average room rate, about half the average room rate achieved by the Alberta Mountain Region.

Calgary had an increase of 8.9% in rooms demand, and a 20.4% increase in RevPAR. Calgary occupancy during the month of June was 78% at a $131.26 average rate.

Winnipeg reported monthly occupancy at 74.7% at a $95.18 average room rate. Room demand for the month of June was up 8.9% and RevPAR was up 8.7%.

Niagara Falls reported an increase in demand of 17.5% and a 21.8% increase in RevPAR. Occupancy for the month of June was 69% and the average rate was $124.24.

Toronto North/East reported at 34.7% increase in demand during the month of June, and a 37% increase in RevPAR.  Occupancy was 65.8% and the average room rate was $110.71.

Toronto Airport/West reported a 21.2% increase in demand, and a 29.8% increase in RevPAR. Occupancy for the month of June was 67.4% and the average room rate was $106.79.  Halifax reported occupancy at 75.3% with an average room rate of $135.99, and they were actually down from the prior year while demand declined by 11.9%.

Overall, the province of Newfoundland reported occupancy at 84.5% during the month of June with a $126.97 average room rate. Manitoba's June occupancy was 72.9% at a $93.71 average room rate. Nova Scotia, Quebec, Yukon Territory and British Columbia all reported occupancy between 70% and 71%. Manitoba, Saskatchewan and the Yukon were the only areas to report average room rates below $100.

June was a GOOD month!

One thing we have noticed from all of these statistics is that Canadian Hoteliers are doing what they should be doing, as demand strengthens in markets, hotel managers are increasing their average room rates.  Yield management does not seem to be one of our problems. As Randy Smith from Smith Travel Research (STR) has said on more than one occasion, the Canadian hoteliers seem to have a lot more rate integrity.
.

Year to Date Occupancy through June By Year
City
2000
2001
2002
2003
2004
Toronto
67.8%
68.2%
63.9%
52.1%
64.7%
Montreal
64.5
64.2
63.0
60.8
59.8
Vancouver
63.1
63.4
60.3
57.0
63.6
Calgary
63.5
63.8
64.0
58.4
62.4
Edmonton
60.9
63.1
75.7
62.0
61.8
Ottawa
67.1
68.6
63.0
62.3
60.6
Halifax
65.8
69.2
66.0
66.7
63.6
.
Year to Date Average Rate through June By Year
City
2000
2001
2002
2003
2004
Toronto
$156.30
$161.29
$159.45
$141.30
$151.26
Montreal
125.32
132.96
138.36
136.11
118.36
Vancouver
128.38
129.43
127.82
122.33
126.85
Calgary
113.41
110.52
113.76
113.11
118.16
Edmonton
83.95
87.31
89.09
96.60
100.04
Ottawa
111.80
128.63
126.32
126.63
125.81
Halifax
109.15
112.85
110.20
117.53
118.91
Source: Smith Travel Research
.
.
CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
June 2004 Year-to-Date
June  2004
Year to Date
Number
of Rooms
Occupancy
Rate 2004
Occupancy
Rate 2003
Average Room 
Rate 2004
Average Room 
Rate 2003
RevPAR 
2004
RevPAR 
2003
RevPAR 
2004
Room Demand 
% Change
Nova Scotia Area 1,693 51.1% 53.0% $73.94 $76.64 $37.78 $40.62 0.5% -3.1%
Halifax, NS 2,077 63.6% 66.6% $118.91 $117.53 $75.63 $78.27 0.0% -4.6%
Montreal, QC 14,814 59.8% 59.5% $118.36 $119.20 $70.78 $70.92 0.3% 0.9%
Quebec City, QC 3,871 57.7% 58.4% $122.44 $123.52 $70.65 $72.14 1.0% -0.2%
Quebec Area 3,473 52.0% 51.6% $88.31 $86.89 $45.92 $44.84 0.1% 1.0%
Toronto Downtown 12,246 64.7% 51.3% $151.26 $141.68 $97.87 $72.68 -1.9% 23.7%
Toronto North/East 6,641 55.3% 46.4% $108.53 $107.37 $60.02 $49.82 0.0% 19.1%
Toronto Airport/West 6,849 68.1% 59.9% $109.49 $107.38 $74.56 $64.32 -4.8% 8.3%
Ottawa, ON 7,571 60.6% 62.3% $125.81 $125.81 $76.24 $78.38 1.6% -1.3%
Ontario East 4,003 49.6% 48.6% $89.38 $88.23 $44.33 $42.88 0.1% 2.3%
Ontario Southwest 8,540 52.9% 53.5% $87.99 $86.38 $46.55 $46.21 2.7% 1.6%
Ontario North 5,461 49.1% 50.8% $79.06 $80.21 $38.82 $40.75 0.1% -3.4%
Niagara Falls, ON 7,429 46.4% 45.0% $107.69 $98.26 $49.97 $44.22 4.7% 8.0%
Ontario Central 8,067 54.5% 54.1% $98.87 $97.07 $53.88 $52.51 2.0% 2.8%
Winnipeg, MB 3,712 60.7% 58.1% $91.69 $91.69 $55.66 $53.27 0.0% 4.5%
Regina/Saskatoon, SK 3,939 57.9% 58.8% $90.75 $87.47 $52.54 $51.43 -0.1% -1.6%
Calgary, AB 5,325 62.4% 58.2% $118.16 $112.67 $73.73 $65.57 -1.4% 5.7%
Edmonton, AB 5,931 61.8% 60.9% $100.04 $96.96 $61.82 $59.05 2.0% 3.5%
Alberta Area 8,339 57.1% 56.3% $92.19 $88.82 $52.64 $50.01 1.9% 3.4%
MountainRegions, AB 2,266 62.7% 57.8% $214.20 $194.06 $134.30 $112.17 0.4% 8.9%
Vancouver, BC 12,589 63.6% 56.9% $126.85 $121.90 $80.68 $69.36 0.2% 12.0%
British Columbia Area 9,098 47.0% 46.6% $102.21 $103.23 $48.04 $48.11 0.8% 1.6%
Victoria, BC 2,877 54.8% 54.2% $93.42 $89.54 $51.19 $48.53 1.5% 2.7%
Provinces
Alberta 21,830 60.3% 58.2% $112.84 $108.14 $68.04 $62.94 1.2% 4.9%
British Columbia 25,748 58.9% 54.9% $124.14 $122.16 $73.12 $67.07 0.9% 8.2%
Manitoba 4,098 59.9% 57.7% $90.22 $90.31 $54.04 $52.11 0.0% 3.8%
New Brunswick 3,030 55.5% 56.2% $94.14 $91.18 $52.25 $51.24 1.2% 0.0%
Newfoundland 1,521 60.4% 59.3% $110.77 $107.14 $66.91 $63.53 0.0% 1.9%
Nova Scotia 3,770 58.1% 60.6% $101.56 $101.62 $59.01 $61.58 0.4% -3.7%
Northwest Territories INS INS INS INS INS INS INS INS INS
Ontario 65,702 57.3% 53.5% $114.24 $109.95 $65.46 $58.82 0.7% 8.0%
Prince Edward Island 889 42.7% 42.2% $87.35 $84.62 $37.30 $35.71 0.0% 1.0%
Quebec 23,294 59.0% 58.5% $127.23 $127.08 $75.07 $74.34 0.3% 1.2%
Saskatchewan 5,376 54.4% 54.7% $84.84 $82.07 $46.15 $44.89 0.2% -0.3%
Yukon Territory 585 45.8% 40.9% $85.98 $80.71 $39.38 $33.01 0.0% 11.9%
Canada 155,843 53.4% 52.1% $98.89 $96.44 $52.81 $50.25 0.7% 3.1%
© Smith Travel Research, 2004. Reproduction or quotation in whole or in part without permission is forbidden. *INS - Insufficient Data

-

Contact:
Selina Lai
HVS International – Canada
2120 Queen St. East, Suite 202
Toronto, ON M42 1E2
(416) 686-2260, ext 21
(416) 686-2264 FAX
slai@hvsinternational.com
www.hvsinternational.com

Also See Hotel Life Expectancy / Canadian Lodging Outlook - March 2004 Year-to-Date / May 2004
European Hotel Transactions 2003 - Country Analysis / Canadian Lodging Outlook - February 2004 Year-to-Date / April 2004
2003 an Unbelievably Strong Year for US Hotel Sales / Canadian Lodging Outlook - December 2003 Year-to-Date / February 2004
2003 Canadian Hotel Transaction Survey / Canadian Lodging Outlook / January 2004
2002 Canadian Hotel Transaction Survey / Canadian Lodging Outlook / Feb 2003
How To Get The Best Sales Price; Positioning Your Hotel for Sell / Stephen Rushmore / Canadian Lodging Outlook - July 2003 YTD / September 2003
Lodging Market Impact of Hosting Olympic Winter Games; Will Salt Lake City Experience Apply to Vancouver and Whistler? / Canadian Lodging Outlook - June 2003 YTD / August 2003
Year-to-date Occupancy through April is 50.4% for all of Canada / Canadian Lodging Outlook - April 2003 YTD / June 2003
SARS and Its Impact on Tourism in Toronto / Canadian Lodging Outlook - March 2003 YTD / May 2003
Hotel Values in Europe - Current Trends / Canadian Lodging Outlook - December 2002 Year-to-Date / Feb 2003
2002 Canadian Hotel Transaction Survey / Canadian Lodging Outlook / Feb 2003
Performance Clauses Essential In Hotel Management Contract / Stephen Rushmore / Canadian Lodging Outlook / Dec 2002
Separating the Hotel Looker From the Hotel Buyer / Stephen Rushmore / Canadian Lodging Outlook / Sept 2002
Making The Ideal Hotel Investment / Stephen Rushmore / Canadian Lodging Outlook / Aug 2002
Reporting In at Six Months..../ Canadian Lodging Outlook / July 2002
The Global Approach To Hotel Valuations / Canadian Lodging Outlook / June 2002
Hotel Insurance Premiums on the Rise? / Canadian Lodging Outlook / May 2002 
Hotel Development Cost Can Determine Feasibility / Canadian Lodging Outlook / May 2002 
Hotel Internet Distribution Channels / January 2002 Month-to-Date Results / Canadian Lodging Outlook / April 2002 
2001 Was a Great Year If You Were in Edmonton! / December 2001 Year-to-Date Results / Canadian Lodging Outlook / Feb 2002 
2001 Canadian Hotel Sales / Canadian Lodging Outlook / Jan 2002 
The Effect on Capitalization Rates and Discount Factors After September 11 / Canadian Lodging Outlook / Dec 2001 
So How Bad Was September for Canadian Hotels.. Pretty Bad! / Nov 2001
So How Bad Was September for Canadian Hotels.. Pretty Bad! / The Canadian Lodging Outlook / September 2001 
Have Hotel Values in Canada Declined Since September 11th? You Bet They Have / The Canadian Lodging Outlook / August 2001 
The Popularity of Boutique Hotels / The Canadian Lodging Outlook / July 2001 
Rising Energy Costs Cause Concern in the Lodging Industry / The Canadian Lodging Outlook / June 2001 
Niagara Falls: With Supply Comes Demand / The Canadian Lodging Outlook / May 2001 
Does Supply Generate Demand? / The Canadian Lodging Outlook / May 2001 
Optimism With a Hint of Caution, As Analysts Predict a Softer Year for the Canadian Hotel Industry / Mar 2001 
Limited-Service Growth in Canada - Where’s it Going? / The Canadian Lodging Outlook / January 2001 
HVS Canada in Review - Year End 2000 / The Canadian Lodging Outlook / March 2001 
Canadian Lodging Outlook / May 2000 Year to Date Statistics / HVS International - Canada / July 2000 
The Rule of Thumb Method...Does It Still Hold Weight? / Elaine Sahlins - HVS / Oct 2000
What’s Hot and What’s Not in Western Canadian Hotel Markets / Mar 2000


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