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So How Bad Was September for Canadian Hotels
..�Pretty Bad!

CANADIAN LODGING OUTLOOK
September 2001
September  2001 Year-to-Date


The Canadian Lodging Outlook is a joint monthly publication 
of Smith Travel Research and HVS International, 
Vancouver and Toronto, Canada

 
By: Salim Gulamani - HVS International - Vancouver

The Alberta Mountain Region market suffered the largest decline in occupancy during the month of September from 92.0% in 2000 to 65.8% in 2001, or by 26 points. The Toronto markets all suffered occupancy declines greater than 20%. Other eastern cities that reported major declines in occupancy were Niagara Falls at 19.4%, Montreal at 17.1%, Ottawa at 16.8%, and Quebec City at 15.0%. In Western Canada, Vancouver and Victoria reported occupancy declines at 15.9% each. Edmonton, Regina/Saskatoon, and Winnipeg had declines between 12.3% and 13.2%, while Calgary declined by 7.2%. 

Downtown Toronto as well as Vancouver�s average room rates declined by over $14, the highest in the country. Montreal�s average rate remained stable. Edmonton�s average rate increased $5, Regina/Saskatoon�s increased $2, and Ottawa�s went up $3. The Alberta Mountain Region area increased their average rates by over $42 while Quebec City increased their average rate by almost $13.

As a result, RevPAR (revenue per available room) in Canada declined by $10, from $81.23 in 2000 to $71.55 in 2001. The downtown Toronto market experienced the greatest decline in RevPAR in the country, by $45. The Alberta Mountain Region had a RevPAR drop of over $38 in September. Vancouver�s RevPAR declined by almost $30. Several other Canadian cities reported RevPAR declines of more than $20 including Victoria, Montreal, and Niagara Falls.

The substantial impact on Canadian hotels during the month of September is evident. But how much of this was directly effected by the attacks of September 11th? If we review year-to-date statistics we find that the hotel industry was already going through a downturn before the recent tragic events. This unfortunate incident only accelerated this process. Year-to-date numbers for the end of August showed that occupancy was already down 1.1%. At the end of September, overall occupancy was down by 2.5%.

According to general managers across the country, occupancy levels for the remainder of 2001 will be 3 to 6 points below original projections. Looking forward, Canadian hoteliers are more optimistic than most of their U.S. counterparts due to the country�s close proximity to major U.S. feeder markets, the favorable exchange rate and Canada�s image as a safe destination.
 
 

Market Area 
2001 Occupancy
2000 Occupancy
2001 Average Rate
2000 Average Rate
2001 RevPAR
2000 RevPAR
Toronto Downtown
68.8%
87.9%
$170.87
$184.97
$117.56
$162.59
Vancouver
67.4%
80.1%
$144.66
$158.70
$97.50
$127.12
Mountain Region
65.8%
92.0%
$294.45
$252.34
$193.75
$232.15
Montreal
71.3%
86.0%
$135.86
$136.08
$96.87
$117.03
Canada
67.4%
75.9%
$106.16
$107.02
$71.55
$81.23
Source: Smith Travel Reasearch


CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
September  2001
September 2001
Number 
of Rooms
Occupancy 
Rate % 2001
Occupancy 
Rate % 2000
Average Room Rate $ 2001
Average Room Rate $ 2000
RevPAR $ 2001
RevPAR $ 2000
Room Supply % Change
Room Demand % Change
Nova Scotia Area 1,285 80.7% 85.2% $90.69 $87.47 $73.79 $74.52 0.0% -5.2%
Halifax, NS 2,599 85.6% 93.1% $131.55 $129.55 $112.61 $120.61 5.6% -2.9%
Montreal, QC 14,396 71.3% 86.0% $135.86 $136.08 $96.87 $117.03 0.8% -16.5%
QuebecCity, QC 3,485 75.5% 88.8% $153.99 $141.28 $116.26 $125.46 2.5% -12.8%
Quebec Area 3,474 65.6% 70.2% $90.38 $85.52 $59.29 $60.04 0.0% -6.5%
Toronto Downtown 12,271 68.8% 87.9% $170.87 $184.97 $117.56 $162.59 0.1% -21.6%
Toronto North/East 6,079 67.0% 86.2% $110.67 $113.16 $74.15 $97.54 -2.0% -23.7%
Toronto Airport/West 8,587 67.9% 85.0% $117.72 $120.87 $79.93 $102.74 4.4% -16.6%
Ottawa, ON 7,561 71.7% 86.2% $128.13 $125.15 $91.87 $107.88 0.5% -16.4%
Ontario East 4,538 67.5% 75.5% $101.58 $96.03 $68.57 $72.50 0.2% -10.3%
Niagara Falls, ON 5,865 65.9% 81.8% $129.94 $129.32 $85.63 $105.78 3.2% -16.9%
Ontario Southwest 5,593 60.2% 68.9% $100.48 $98.52 $60.49 $67.88 0.5% -12.1%
Ontario North 4,450 73.6% 74.3% $98.48 $98.02 $72.48 $72.83 0.3% -0.7%
Ontario Central 7,034 69.5% 76.1% $96.20 $92.56 $66.86 $70.44 0.5% -8.2%
Winnipeg, MB 3,214 65.8% 76.8% $94.65 $94.03 $62.28 $72.22 0.2% -14.1%
Regina/Saskatoon,SK 3,777 59.0% 68.0% $81.80 $80.08 $48.26 $54.45 4.0% -9.9%
Calgary, AB 7,290 72.0% 77.6% $111.32 $114.90 $80.15 $89.16 1.0% -6.3%
Edmonton, AB 4,664 59.2% 67.5% $92.87 $87.79 $54.98 $59.26 0.0% -12.4%
Alberta Area 5,427 68.3% 70.8% $90.75 $91.39 $61.98 $64.70 1.0% -2.5%
Mountain Regions, AB 2,286 65.8% 92.0% $294.45 $252.34 $193.75 $232.15 -6.8% -33.4%
Vancouver, BC 11,933 67.4% 80.1% $144.66 $158.70 $97.50 $127.12 1.9% -14.2%
British Columbia Area 5,054 65.7% 68.6% $84.42 $82.44 $55.46 $56.55 1.1% -3.2%
Victoria, BC 2,534 66.3% 78.8% $128.82 $136.29 $85.41 $107.40 0.8% -15.2%
Provinces
Alberta 19,667 67.2% 75.5% $121.90 $127.69 $81.92 $96.41 -0.4% -11.3%
British Columbia 22,329 64.2% 74.6% $127.88 $138.93 $82.10 $103.64 1.1% -13.0%
Manitoba 3,479 65.9% 76.6% $92.90 $92.77 $61.22 $71.06 0.7% -13.3%
New Brunswick 2,733 76.6% 80.3% $95.23 $91.42 $72.95 $73.41 0.8% -3.8%
Newfoundland 1,521 77.7% 77.9% $103.60 $97.53 $80.50 $75.98 0.0% -0.4%
NovaScotia 3,884 83.9% 90.1% $118.15 $114.34 $99.13 $103.02 1.6% -5.3%
Northwest Territories INS INS INS INS INS INS INS INS INS
Ontario 61,539 68.2% 81.6% $123.73 $127.32 $84.38 $103.89 0.9% -15.7%
Prince Edward Island 833 63.5% 75.0% $105.45 $108.69 $66.96 $81.52 0.0% -15.3%
Quebec 21,794 70.8% 83.9% $131.61 $129.63 $93.18 $108.76 0.7% -15.0%
Saskatchewan 5,216 55.9% 64.0% $76.62 $75.24 $42.83 $48.15 2.5% -10.5%
Yukon Territory 788 57.1% 62.1% $85.85 $81.68 $49.02 $50.72 0.0% -8.0%
Canada 143,783 67.4% 75.9% $106.16 $107.02 $71.55 $81.23 0.8% -10.6%
© Smith Travel Research, 2001. Reproduction or quotation in whole or in part without permission is forbidden. *INS - Insufficient Data


CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
September 2001
Year-to-Date
September 2001 
Year to Date
Number 
of Rooms
Occupancy 
Rate % 2001
Occupancy 
Rate % 2000
Average Room Rate $ 2001 Average Room Rate $ 2000 RevPAR $ 2001 RevPAR $ 2000 Room Supply % Change Room Demand % Change
Nova Scotia Area 1,285 65.9% 67.7% $82.52 $80.62 $54.38 $54.58 0.0% -2.7%
Halifax, NS 2,599 75.3% 74.5% $118.93 $118.09 $89.55 $87.98 0.6% 1.8%
Montreal, QC 14,396 68.6% 71.0% $135.29 $128.57 $92.81 $91.28 0.8% -2.7%
QuebecCity, QC 3,485 69.3% 72.5% $134.84 $125.38 $93.44 $90.90 1.0% -3.4%
Quebec Area 3,474 59.5% 57.4% $87.34 $82.83 $51.97 $47.54 0.0% 3.6%
Toronto Downtown 12,271 70.6% 72.9% $165.59 $163.99 $116.91 $119.55 0.4% -2.7%
Toronto North/East 6,079 66.9% 70.6% $109.41 $109.04 $73.20 $76.98 1.0% -4.2%
Toronto Airport/West 8,587 71.6% 76.8% $117.15 $113.48 $83.88 $87.15 3.8% -3.1%
Ottawa, ON 7,561 69.6% 73.6% $127.60 $118.61 $88.81 $87.30 -1.0% -6.3%
Ontario East 4,538 61.3% 64.2% $97.52 $90.34 $59.78 $58.00 0.9% -3.6%
Niagara Falls, ON 5,865 61.2% 63.7% $131.46 $122.41 $80.45 $77.98 5.0% 0.9%
Ontario Southwest 5,593 60.0% 62.2% $98.58 $94.07 $59.15 $58.51 0.7% -2.7%
Ontario North 4,450 62.3% 63.7% $92.70 $89.76 $57.75 $57.18 0.4% -1.8%
Ontario Central 7,034 64.0% 63.8% $93.35 $89.08 $59.74 $56.83 0.5% 0.8%
Winnipeg, MB 3,214 63.3% 67.0% $92.43 $88.39 $58.51 $59.22 1.3% -4.2%
Regina/Saskatoon,SK 3,777 62.7% 66.8% $81.19 $78.54 $50.91 $52.46 3.3% -3.1%
Calgary, AB 7,290 68.1% 68.5% $113.08 $116.35 $77.01 $79.70 3.1% 2.4%
Edmonton, AB 4,664 65.8% 62.9% $93.27 $84.53 $61.37 $53.17 0.5% 5.0%
Alberta Area 5,427 64.9% 64.5% $86.61 $83.37 $56.21 $53.77 2.0% 2.5%
MountainRegions, AB 2,286 71.2% 78.7% $230.48 $207.89 $164.10 $163.61 -2.9% -12.3%
Vancouver, BC 11,933 68.0% 67.1% $140.37 $142.46 $95.45 $95.59 2.5% 3.7%
British Columbia Area 5,054 55.9% 56.9% $83.86 $80.60 $46.88 $45.86 1.2% -0.5%
Victoria, BC 2,534 64.0% 65.9% $122.31 $120.81 $78.28 $79.61 0.3% -2.7%
Provinces
Alberta 19,667 67.1% 67.6% $117.83 $116.88 $79.06 $79.01 1.2% 0.4%
British Columbia 22,329 64.1% 64.6% $135.33 $132.30 $86.75 $85.47 1.4% 0.7%
Manitoba 3,479 63.1% 66.9% $91.08 $87.47 $57.47 $58.52 1.4% -4.3%
New Brunswick 2,733 65.7% 69.3% $91.96 $88.26 $60.42 $61.16 0.8% -4.4%
Newfoundland 1,521 69.8% 68.2% $99.97 $95.47 $69.78 $65.11 0.6% 2.9%
Nova Scotia 3,884 72.0% 72.0% $107.20 $105.04 $77.18 $75.63 0.2% 0.1%
Northwest Territories INS INS INS INS INS INS INS INS INS
Ontario 61,539 66.5% 69.4% $122.13 $118.10 $81.22 $81.96 1.2% -3.0%
Prince Edward Island 833 56.0% 57.0% $97.94 $99.04 $54.85 $56.45 0.0% -1.7%
Quebec 21,794 67.0% 68.9% $127.81 $121.31 $85.63 $83.58 0.5% -2.3%
Saskatchewan 5,216 58.7% 62.6% $76.31 $74.00 $44.79 $46.32 1.9% -4.4%
Yukon Territory 788 53.6% 54.2% $86.84 $85.79 $46.55 $46.50 0.0% -1.0%
Canada 143,783 63.3% 64.9% $104.88 $100.64 $66.39 $65.32 1.1% -1.3%
© Smith Travel Research, 2001. Reproduction or quotation in whole or in part without permission is forbidden. *INS - Insufficient Data


###

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 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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