At year-end 2006, national occupancy levels were recorded at 65% with an average daily rate of $124. Led by strong growth levels in Western Canada and major markets in Ontario, national demand posted a 4.0% growth in 2006, well ahead of the national supply growth of 1.9%. With a further 1.1% increase in supply expected in 2007, occupancy is projected to improve to 66%, reflecting a continued 2.5% growth momentum. Average daily rates are forecast to increase by 3% in 2007 to reach $127.
|
MAJOR URBAN MARKET OCCUPANCY PERFORMANCE
|
|
|
2004
Actual
|
2005
Actual
|
2006
Actual
|
2007
Projection
|
|
Vancouver
|
67%
|
69%
|
72%
|
72%
|
|
Calgary
|
66%
|
70%
|
74%
|
74%
|
|
Edmonton
|
62%
|
66%
|
72%
|
72%
|
|
Winnipeg
|
62%
|
62%
|
65%
|
65%
|
|
Toronto
|
65%
|
67%
|
66%
|
67%
|
|
Niagara Falls
|
55%
|
57%
|
59%
|
59%
|
|
Ottawa
|
63%
|
65%
|
69%
|
69%
|
|
Montreal
|
67%
|
68%
|
68%
|
68%
|
|
Quebec City
|
63%
|
64%
|
62%
|
63%
|
|
Halifax/Dartmouth
|
71%
|
70%
|
69%
|
70%
|
|
CANADA
|
61%
|
63%
|
65%
|
66%
|
|
MAJOR URBAN MARKET ADR PERFORMANCE
|
|
|
2004
Actual
|
2005
Actual
|
2006
Actual
|
2007
Projection
|
|
Vancouver
|
$118
|
$121
|
$128
|
$133
|
|
Calgary
|
$112
|
$115
|
$127
|
$132
|
|
Edmonton
|
$97
|
$99
|
$104
|
$108
|
|
Winnipeg
|
$93
|
$95
|
$100
|
$103
|
|
Toronto
|
$126
|
$130
|
$135
|
$140
|
|
Niagara Falls
|
$136
|
$142
|
$144
|
$148
|
|
Ottawa
|
$124
|
$126
|
$128
|
$131
|
|
Montreal
|
$135
|
$139
|
$139
|
$142
|
|
Quebec City
|
$141
|
$139
|
$139
|
$140
|
|
Halifax/Dartmouth
|
$121
|
$122
|
$124
|
$127
|
|
CANADA
|
$116
|
$119
|
$124
|
$127
|
|
MAJOR URBAN MARKET REVPAR PERFORMANCE
|
|
|
2004
Actual
|
2005
Actual
|
2006
Actual
|
2007
Projection
|
|
Vancouver
|
$78
|
$84
|
$92
|
$96
|
|
Calgary
|
$73
|
$81
|
$95
|
$99
|
|
Edmonton
|
$61
|
$65
|
$74
|
$77
|
|
Winnipeg
|
$57
|
$59
|
$65
|
$67
|
|
Toronto
|
$82
|
$86
|
$89
|
$94
|
|
Niagara Falls
|
$75
|
$81
|
$84
|
$88
|
|
Ottawa
|
$78
|
$82
|
$88
|
$91
|
|
Montreal
|
$91
|
$94
|
$94
|
$97
|
|
Quebec City
|
$88
|
$88
|
$87
|
$88
|
|
Halifax/Dartmouth
|
$85
|
$86
|
$85
|
$89
|
|
CANADA
|
$71
|
$75
|
$80
|
$83
|
Calgary led the country in both demand and rate growth in 2006, exceeding our Fall Outlook projections. Calgary achieved a 10.2% increase in ADR to close the year at $127, with 2006 demand up by 9% to reach a 74% occupancy. For 2007, Calgary is projected to maintain a 74% occupancy at an ADR of $132.
Edmonton also had a stellar year in 2006, with city-wide demand up by 10.4% to reach a 72% occupancy. Although rate growth was not as strong as Calgary, Edmonton closed the year at an ADR of $104, 5% ahead of 2005. PKF projections call for a further 3% in supply in 2007, with occupancy forecast to remain at 72%, and the ADR rising to $108.
Vancouver closed the year at 72% occupancy and grew by 6.2% in ADR to $128. With a 0.9% increase in supply, Vancouver is projected to achieve a 72% occupancy in 2007 at an ADR of $133.
By year-end 2006, demand in Toronto was up by just under 5%, with ADR finally surpassing 2002 levels, to reach $135. This year, Toronto is expected to see a 1.1% growth in supply, and a 2.5% growth in demand. As such, Toronto is forecast to achieve a 67% occupancy and an average daily rate of $140 in 2007.
From a RevPAR growth perspective, the best performing markets in 2006 were Calgary (up 17.0%), Edmonton (up 14.1%), Winnipeg (up 10.7%), Vancouver (up 10.3%), Ottawa (up 7.7%), Niagara Falls (up 4.8%) and Toronto (up 3.5%).
Fran Hohol, CMC
Principal
