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Limited-Service Growth in Canada � Where�s it Going?
CANADIAN LODGING OUTLOOK
November 2000 Year-to-Date
The Canadian Lodging Outlook is a joint monthly publication of Smith Travel Research and HVS International, Vancouver and Toronto, Canada

 
by Monique Rosszell, Consulting and Valuation Analyst, HVS Toronto
Canadian Lodging Outlook -  November 2000; 

Over the past ten years both leisure and business travelers have become much more discriminating with regard to their dollars spent on accommodation. Overnight hotel guests frequently only want a comfortable clean bed, not a destination experience. As a result, unprecedented growth in the limited-service sector is being experienced.

Some of the larger players in this market in Canada are Superior Lodging Corporation (Super 8 Motels, Wingate Inns) Days Inn Canada, Bass Hotels (Holiday Inn Express), Choice Hotels (Comfort Inn, Sleep Inn and Econo Lodge) and Accor (Motel 6). 

Super 8 Motels are popping up everywhere. Superior Lodging Corporation, which is the master licensee for both Super 8 motels and Wingate Inns, has its� hands full. Over the past three years, the Super 8 Motel brand has doubled the number of its Canadian motels and achieved 1000 percent growth over the past ten years. Today, there are 75 Super 8�s open and operating in Canada. There will be 80 open by the end of February 2001; 86 by April 2001 and 90 by the end of June 2001. There are currently 18 Wingate properties under development with the first Canadian Wingate Inn to open in Calgary, Alberta in June 2001.

Days Inn Canada presently has 73 properties (including 2 Days Hotels) with four under construction (Ottawa, Calgary, Scarborough, and Saskatoon) and three new conversions for a total of 80 properties. Fifty percent of the properties are full-service and the other fifty percent are limited-service. Since July 1999, there have been seven new properties added to the Days Inn portfolio. The focus over the next few years will be to expand properties at a rate of 15 per year � mainly in eastern Canada. This should give an overall total of 120 to 130 hotel properties by 2006. 

Holiday Inn Express was launched in Canada in 1993. There are currently 31 properties open or under construction of which 15 are new in the last 36 months. Fifteen additional properties are expected to open in the next 36 months � 65% of these properties are new builds versus 35% conversions. 

Choice Hotels Canada (Comfort Inn, Sleep Inn, and Econo Lodge), which came to be in 1993 when a 50/50 partnership was forged between Journey�s End Corporation (now part of Westmount Hotels) and Choice Hotels international. Currently, there are approximately 170 hotels operating with a further 58 under development. 

Accor opened its first Motel 6 in 1999 and presently has three corporate properties in the Metropolitan Toronto area. It plans to expand these to seven by the end of 2001 and open three more in the Ottawa area. In the longer term, plans are to have 75 franchised properties coast to coast. 

Why are limited-service properties doing so well? Travelers like the product and room rates, while operators like the bottom lines with fewer headaches that invariably come with food and beverage operations.

Ms. Rosszell holds a degree in Hotel Management from Lausanne, Honours Bachelor of Economics from Queens University, and is fluent in English, French, and Japanese. 



CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
November 2000
Year-to-Date
 . Number of Rooms Occupancy Rate
2000
Occupancy Rate 1999 Average Room Rate 2000  Average Room Rate 1999 RevPAR
2000
RevPAR 1999  Room Supply % Change Room Demand % Change
Niagara Falls, ON 5,030 61.7% 63.4% $119.82 $114.80 $73.93 $72.78 4.9% 2.2%
Ontario Southwest 5,292  62.4%  62.6%  $93.25 $86.56  $58.19  $54.19 0.8%  0.5%
Ontario North 4,183 62.4%  65.6%  $88.64 $82.84  $55.31 $54.34  0.2%  -4.8%
Ontario Central 7,067 63.2%  65.9%  $89.71 $84.23  $56.70 $55.51  1.7%  -2.6%
Winnipeg, MB 3,051 67.6%  74.0%  $88.69 $89.24 $59.95 $66.04  1.9%  -7.0%
Regina/Saskatoon, SK 3,843 67.6% 68.5%  $78.93 $76.15 $53.36 $52.16  3.8%  2.4%
Calgary, AB 7,463 67.7% 69.5% $116.64  $111.53 $78.97 $77.51 6.6%   3.7%
Edmonton, AB 4,933 63.7%  63.9% $84.93  $81.83 $54.10 $52.29 0.7%  0.5%
Alberta Area 4,984 63.3%  61.1%  $82.44 $80.17 $52.18 $48.98  2.5%  6.2%
Mountain Regions, AB 2,560 75.1%  78.4%  $201.12 $186.75 $151.04  $146.41 -0.4% -4.6%
Vancouver, BC 12,108 66.9%  69.2%  $138.10 $141.05 $92.39  $97.61 8.2%  4.6%
British Columbia Area 4,213 54.9%  54.5% $78.44 $76.52 $43.06 $41.70 1.1% 1.7%
Victoria, BC 2,693 63.6%  66.1%  $118.20 $113.74 $75.18 $75.18 -0.5% -4.2%
Provinces
Alberta 20,039 66.6%  67.3%  $113.56 $110.18 $75.63 $74.15 2.5% 1.4%
British Columbia 22,387 63.0%  64.1% $129.12 $127.49 $81.35 $81.72 3.0%  1.2%
Manitoba 3,254 67.4%  73.7%  $87.77 $87.99  $59.16 $64.85 1.6%  -7.1%
New Brunswick 2,886 69.2%  71.1% $87.33 $81.93 $60.43 $58.25 0.1%  -2.6%
Newfoundland 1,466 68.3%  71.1% $94.78 $91.68 $64.73 $65.18 0.2%  -3.8%
Nova Scotia 3,420 70.8%  73.2%  $104.02  $95.59  $73.65 $69.97 0.0%  -3.4%
Northwest Territories INS  INS INS INS INS  INS INS INS INS
Ontario 60,064 69.2% 70.7% $118.36 $109.64 $81.91 $77.52 -0.2%  -0.2%
Prince Edward Island 784 54.8% 54.6% $96.66 $90.46 $52.97 $49.39 0.4%  0.4%
Quebec 21,948 68.6% 69.2% $121.75 $112.31 $83.52 $77.72 -0.4%  -0.4%
Saskatchewan 5,330 62.6%  64.9%  $74.30 $71.11 $46.51 $46.15 -1.1%  -1.1%
Yukon Territory 384 51.6%  47.0%  $80.91 $81.10 $41.75 $38.12 9.8%  9.8%
Canada 141,962 63.9% 65.0% $99.50 $93.69 $63.58 $60.90 0.0% 0.0% 
© Smith Travel Research, 2000. Reproduction or quotation in whole or in part without permission is forbidden. *INS - Insufficient Data


 
HVS Toronto, led by Jon Lantz and Lorenzo Palumbo, in conjunction with Betsy MacDonald, MAI, AACI, (Managing Director of the Vancouver office), to diversify the range of services for our Canadian clients, established Hospitality Venture Services, Inc., Real Estate Broker. Now, in addition to appraisals, market studies, valuations, and the variety of consulting services offered, HVS Toronto provides immediate access and extremely strong contacts in hospitality brokerage in Canada. For further information, contact HVS Toronto at (416) 686-2260.

###

Contact:
Kimberley Tyls
HVS International 
4235 Prospect Road
North Vancouver, BC V7N 3L6
(604) 988-9743, ext. 21
[email protected]
www.hvsinternational.com

Also See 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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