HVS 2014 Canadian Hotel Valuation Index
The HVS 2014 Canadian Hotel Valuation Index (HVI) not only released countrywide hotel values for 2013 but also projects the direction of these values through 2017.
The Canadian lodging market is on track for a recordbreaking year in 2014. Many markets across Canada will achieve their highest RevPAR ever this year. Challenging winter conditions in many parts of the country hindered the performance of the Canadian lodging market in the first quarter, which led to temporary market concern, but the second and third quarters of 2014 have seen a remarkable strengthening of market fundamentals.
The Canadian lodging market is on track for a recordbreaking year in 2014. Many markets across Canada will achieve their highest RevPAR ever this year. Challenging winter conditions in many parts of the country hindered the performance of the Canadian lodging market in the first quarter, which led to temporary market concern, but the second and third quarters of 2014 have seen a remarkable strengthening of market fundamentals. According to RBC, the growth in Canada's real gross domestic product (GDP) picked up to 3.1% in the second quarter of 2014 following weak growth of 0.9% in the first quarter, which parallelled the tepid growth in lodging demand in the same time period. The weaker loonie and the stronger US economy fuelled economic growth in Canada in the second and third quarters, and this increase in economic activity has translated into very solid demand gains in the Canadian lodging market. Consequently, the national occupancy is projected to reach 65% for 2014, which is fractionally higher than the previous record-breaking occupancy set in 2007.