Hotel Online  Special Report

 Canadian First Half of the Year Winners Are Calgary, Edmonton, Alberta North,
and Downtown Vancouver with Occupancies Over 70% and
Average Room Rates Exceeding $100

CANADIAN LODGING OUTLOOK
June 2006


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

All the numbers are in for the first half of the year, and the winners are:

  • Calgary, 
  • Edmonton, 
  • Alberta North, and 
  • Downtown Vancouver. 
All of these markets reported occupancies over 70% with average room rates exceeding $100.  Alberta North reported year to date occupancy at 75.1% at a $128.43 average room rate. RevPAR was $96.45 compared to $77.17 over the same period last year, an increase of 25.9%. Demand was up 10.2% with a 1.5% increase in supply.

Calgary’s occupancy was 71.9% with an average room rate of $127.06. Year to date RevPAR was $91.36 as compared to $73.89 last year, an increase of 23.6%.  Demand in Calgary was also up 10.2%, with no growth in supply.

Edmonton reported year to date occupancy at 70.3% at a $104.03 average room rate.  RevPAR was $73.13 compared to $61.86 over the same period last year, an increase of 18.2%. Demand was up 13.1% with a 2.4% increase in supply.

Downtown Vancouver’s occupancy was 71.4% with an average room rate of $152.80. Year to date RevPAR was $109.10 as compared to $94.43 last year, an increase of 15.5%. Demand in Downtown Vancouver was up 8.1%, with no growth in supply.

In terms of average room rate, Downtown Toronto has the highest at $165.39 an increase of 5.9% over the same period in 2005. Downtown Montreal reported an average room rate of $158.99, an increase of 5.2% over the same period in the prior year. Downtown Vancouver came in third with an average rate of $152.80, an increase of 6.8% over the first six months in 2005.

RevPAR growth for Downtown Montreal was 13% in the first six months as compared to the same period last year.  Demand in Downtown Montreal increased 7.7% and supply increased 0.1%.

Downtown Toronto experienced a RevPAR growth of 7.4%, demand increased by 5.5% and supply increase by 4.1%.

RevPAR growth for all of Canada with 167,000 rooms participating was 7.5% for the first half of the year in comparison to the same period in 2005. Demand increased by 3.4% and there was a 1.5% increase in supply.

Also

I am pleased to announce that Carrie Russell, AACI, RIBC has become shareholder in MM&R Valuation Services, Inc dba: HVS International - Canada. Carrie is now a partner with myself and Steve Rushmore. Congratulations Carrie!

HVS Canada has grown by two people in the last year. Brandon Royal is an Associate with HVS in the Vancouver office, and has just become a candidate with the Appraisal Institute of Canada. Brandon has his undergraduate degree from the University of British Columbia
with a concentration in architecture, and a master's degree in Hotel Administration from Ecole Hoteliere de Lausanne, Switzerland. 

Paul Varteressian joined HVS as a Consultant and Valuation Analyst. Paul is a graduate of Cornell University's School of Hotel Administration. Paul is from Oakville, Ontario and was a varsity hockey player at Cornell. 

At long last, we are excited to announce that our Vancouver office is moving at the end of August. We will hold an open house later in the year. Our new address will be 145 W 17th Street, Suite 400, North Vancouver, BC. Canada V7M 3G4. Our phone and fax numbers will remain the same 604-988-9743, and fax 604-988-4625.

.

CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
June 2006

.
CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
June 2006 YTD

.© Smith Travel Research, 2005. 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 A Simple Solution for Hotel Chains to Deal with the Impact Issue / Steve Rushmore / Canadian Lodging Outlook - May 2006 Year-to-Date
Some Long-term Trends that Might be Adverse to the Future of the Hotel Industry / Steve Rushmore / Canadian Lodging Outlook - April 2006 Year-to-Date
Hotel Feasibility/Market Demand/Valuations and Appraisals /Betsy MacDonald and Steve Rushmore / Canadian Lodging Outlook - March 2006 Year-to-Date
When Will The Bubble Burst? / Stephen Rushmore / Canadian Lodging Outlook - January 2006 Year-to-Date
Low Cap Rates Drive Gains in Hotel Values / Suzanne R. Mellen / Canadian Lodging Outlook - December 2005 Year-to-Date
Now Is The Time to Buy New Orleans Hotel / Stephen Rushmore / Canadian Lodging Outlook - September 2005 Year-to-Date
What Does a Hotel Franchise Cost? / Stephen Rushmore / Canadian Lodging Outlook - August 2005 Year-to-Date
Basic Concepts of Co-Branding, With Examples from the Hospitality Industry Could Co-branding Improve Your Bottomline? / Peggy Yip / Canadian Lodging Outlook - July 2005 Year-to-Date
Brand Equity: Raising the Flag / Theodore Noseworthy / Canadian Lodging Outlook - April 2005 Year-to-Date
Timeshare Cash-Flow Modeling and Market Feasibility / Canadian Lodging Outlook - March 2005 Year-to-Date
Low Interest Rates and High Demand for Hotel Assets Fuels Value Gains / Canadian Lodging Outlook - February 2005 Year-to-Date
A Crash Course In Cap Rates / Canadian Lodging Outlook - January 2005 Year-to-Date
2004 Canadian Hotel Transaction Survey / Canadian Lodging Outlook - November 2004 Year-to-Date
HVS International Hotel Development Cost Survey 2004 / Canadian Lodging Outlook - September 2004 Year-to-Date
Defining a Hotelier; The Hotel Professional Has Gone Through a Major Transition Over the Past 20 Years / Mark Keith / Canadian Lodging Outlook - August 2004 Year-to-Date
Hotel Investments; The Magic, Curse Of Leverage / Canadian Lodging Outlook - July 2004 Year-to-Date / September 2004
June Results Are In And.......We’re Back! / Canadian Lodging Outlook - June 2004 Year-to-Date / Aug 2004
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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