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Market Insights: the hotel market in Niagara Falls

Posted by Greg Chew on Apr 12, 2016 3:56:07 PM

hotel real estate niagara falls hotels for sale in canada

Canada is one of the world’s top travel destinations with Niagara Falls representing the fourth most visited destination in the country. Tourism plays an integral role in Niagara Falls economy and hospitality properties represent some of the city's biggest employers.  

Over 2015 and 2016, the market value of the Canadian dollar has helped to drive an increase in tourism visits and spending and has created an opportune time for investor acquisition.


Hotel market in Niagara Falls an overview 

Hotels and hospitality properties sit in a strong asset class and the market in Niagara Falls is hot. The combining factors of a weak Canadian dollar, low gas prices, aggressive marketing tactics and an upward trajectory in the hotel real estate market has peaked investor interest in Niagara Falls.

The hotel landscape in Niagara Falls combines international luxury brands, with mid-level brands, boutique hotels and motel properties. Major hotels nodes are situated within the Victoria Centre, Stanley Avenue, Falls District and Lundy’s Lane.

Hotel values in Niagara Falls have increased over 2015 with the strength of the tourism market. Niagara Falls hotel values increased by +9% in 2015 according to a Collier's International study, with values expected to increase further in 2016.

Quick Stats: 

  • Niagara Fall is one day drive within a market area of 150 million
  • Rooms 14,643
  • Annual Occupancy 56.9%
  • Average Daily Rate $143.95
  • RevPar $81.91
  • Available Room Nights 5,344,695
  • Occupied Room Nights 3,041,131
  • Rooms Revenue $437,770,807
  • 50% of all overnight visitors stay at hotels, motels, or bed and breakfast providers.
  • 76% of all visitor spending in Niagara Falls is generated by overnight travellers.


Tourist visitation on the rise

Tourist visitation across Canada is on the rise, as a 7.8% increase was recorded by Destination Canada for 2015. The value of the Canadian dollar is having a double effect, US tourists are returning for the cost advantage and Canadians are staying in country for vacation (trips to the U.S. were down 10% over 2015).

With the influx of tourists, Niagara Falls based businesses reported gains between 20-30% over 2015 with optimism high for a similar 2016.

Niagara-based tourism and hospitality stakeholders continue to up the ante in service offerings and new attractions. These additions help to increase Niagara’s ability to encourage multi-day tourist visitation. 


International investment interest 

Foreign investors now have a purchasing power advantage in Canada, aggressive bidding on hospitality assets is both predicted and in practice. The results of a recent hotel investors survey, communicated that active hotel investors are looking to buy in the Canadian hotel real estate market over 2016. 

Hotel real estate Niagara Falls 

With the hotel market heating up in Niagara Falls properties are moving over market value. Connect with me for market expertise and insight on site selection, value and available hotels for sale in Niagara Falls. 

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Topics: hotel investment

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