Winnipeg developments lead Prairie hotel growth

Winnipeg currently has at least five new hotel projects on the go, while Edmonton is seeing renovations to existing stock despite a decrease in revenue

Western Investor
August 10, 2017

A rendering of The Fairfield Inn & Suites by Marriott Winnipeg expansion at 1301 Ellice Ave. | Winnipeg Free Press


A report from Stevenson Advisor finds that there are at least five new hotel projects under way in Manitoba, all in Winnipeg.

The new builds are a Hyatt House luxury hotel planned for 700 Sterling Lyon Parkway; a new Best Western hotel on Regent Avenue West; the Sutton Place Hotel that will be part of True North Square in downtown Winnipeg; and a CanadInns property built adjacent to the McPhillips Station Casino to complete in 2019.

A hotel-expansion project will see a new Marriott Residence Inn extended-stay hotel added onto the existing Fairfield Inn & Suites by Marriott Winnipeg.

Stevenson Advisors vice-president Aaron DeGroot admitted surprise that so many hotel projects are underway.

He noted there was a slowdown in hotel development in 2015 and 2016, as investors and developers waited to see how well the market absorbed the rooms that were added during the last growth spurt.

That saw eight hotels built or redeveloped, including two new boutique hotels built downtown between 2011 and early 2015.

By comparison, there were only two new hotels under construction in the city in 2016 – a Super 8 and a Hilton Garden Inn.

"Investors are looking to Winnipeg again. We’ve got another kind of mini-boom of hotel development happening,” DeGroot said.


APA bucks Alberta trend

Despite headwinds for the hotel industry, Japan-based APA has refurbished the Coast Edmonton Plaza, including renovations to all 299 rooms.

But don’t expect many new properties to be opened in either Edmonton or Calgary, both of which are suffering low occupancies and a glut of hotel space.

Both cities are expected to see negative Revpar growth this year.

In Calgary, Revpar will average $77.52 and occupancy levels will be in the 53 per cent range, down from 70 per cent in 2014 before oil prices crashed, said HVS.

Edmonton will see a 9 per cent increase in hotel rooms this year, far outstripping demand, according to CBRE. Edmonton’ Revpar this year is pegged at $72. 

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