Market Research Report
Hospitality Real Estate Sector in Canada - Growth, Trends, And Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||925430|
|Published||Content info||120 Pages
Delivery time: 2-3 business days
|Hospitality Real Estate Sector in Canada - Growth, Trends, And Forecast (2020 - 2025)|
|Published: February 1, 2020||Content info: 120 Pages||
The hospitality real estate sector in Canada already has a number of players who have their presence in most of the famous cities, yet it holds a place for numerous newcomers into the market. The market is driven majorly by the tourism industry. In order to accommodate the increasing number of visitors, the organizations are investing heavily in the construction industry. The hotels and accommodation segment are driving the market and has become the highest revenue generator for the market. The revolutionary technological upgradations that are coming in the construction industry are making it a bit for the investors to renovate their hotels from time to time in order the attract the dynamic customer group. The use of modular construction has been steadily increasing in the hospitality sector. This technology is typically helping the investors in completing the construction in a shorter span of time. the institutions are investing a greater interest in developing new hotel projects by focusing on different specializations that fit their target location and market. This may include much smaller room sizes, more outdoor space, lobbies with integrated bars and restaurants, of which impact the type of materials needed for construction and cost to build a project. Shortages in the availability of the construction workforce and rising costs of raw materials are inhibiting the market to score even a greater number of market share.
The Rising Number of Tourists is Making A Way for More Hotel Development Projects
It is evident from the statistical information that, the developed nation has been attracting a large number of visitors to the country from year to year. The country also has a good occupancy rate for different hotels and has room for many more as well. The number of visitors to Canada has been increasing and is scoring a positive number every year. In order to accommodate the increasing number of tourists, many companies have started to invest in hospitality real estate sector. Being a host for highest number of visitors Toronto topped the list of projects in construction pipeline with more than 45 project which are going to be house around 7,000 rooms, followed by Niagara Falls and Ottawa. Vancouver and Montreal are the cities who have high number of construction pipeline projects. These five cities accounted around 40% of the total number of rooms in pipeline. The top players are trying to grab the major share by investing heavily in the hotel segment through construction of new hotel and by renovating the existing ones with high quality lifestyle features. Hilton Hotels & Resorts which is head quartered in US has highest number of construction projects in pipeline with more than 55 projects which includes the construction of almost 6,800 rooms followed by Marriott International with a record 52 projects with almost 6,900 rooms and InterContinental Hotels Group (IHG) with around 50 projects for 4,800 rooms.
The Increasing Affordability Class of Travellers Are Driving the Market
The leisure travel to Canada is more than that of business trips. The numerous beautiful nature attractions especially the Niagara Falls, Banff National Park, Tofino, Stanley Park, Butchart Gardens are a few to list. According to the statistics, most of the visitors have chosen midscale or upper-midscale stays on their trip to Canada. The global trends of tourism also include an increasing number of upper mid-class and their growing increase in travel is primarily driven by rising levels of affordability due to increasing partner earnings. The investors have a clear understanding of this trend and are trying their best to grab this opportunity by addressing the traveler's expectations and their choices of stays.
The Hotel segment in the region is recoding rising average daily revenue thus bringing profits to the investors. The increasing number of tourists who are visiting the country is been increasing from the past few years thus making it a profitable segment to the newcomers who are showing interest in investing in the hospitality real estate.