April 6, 2010

Visiting Toronto or Vancouver in the near future? Don’t worry about accommodations, as more than 1,000 luxury hotel rooms are slated to open over the next 12 months.

According to the Globe and Mail, the hoteliers aren’t worried about oversupply! Is the current market overserved? They think so.

“Within the next 12 months, more than 1,000 luxury hotel rooms are slated to open in each of those cities – a huge expansion that was planned before the recession hit, and one with uncertain consequences for an industry hammered during the downturn.” Globe and Mail

Colliers International states that revenue per available room, a key measure of the sector’s financial health, plunged 12 per cent, over the past few years. Yikes!

Hopeful signs are on the horizons. “Figures from STR Global, which tracks occupancy and rates week-by-week, show that life is slowly returning to the market. The average daily rate was up 0.3 per cent at the end of March, to $118.77. Occupancy rates climbed 1.7 per cent to 58.2 per cent.” (Globe and Mail) Great news!

What are we to look forward to in the next 12 months? Thompson, Trump, Four Seasons and Ritz-Carlton in Toronto and the Shangri-La, Fairmont Pacific Rim and Hotel Rosewood Georgia in Vancouver.

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