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Halifax’s hotel market is undergoing a significant revitalization, driven by strong population growth, increasing capital investments, and several major infrastructure projects, according to a recent report by By Lea Vaksman , Lucas Bruce , Monique Rosszell of HVS.
The city is poised for substantial recovery as Nova Scotia’s hotel market benefits from an improved supply landscape and rising demand for accommodations.
Growing demand and recovery outlook
The report highlights the resilience of Halifax’s hospitality sector. Revenue per available room (RevPAR) is forecast to reach 128 per cent of 2019 levels by 2024, supported by steadily increasing average daily rates (ADR) and strong demand. Hotel occupancy levels have shown considerable improvement as travel activity rebounds following the pandemic, aided by a rise in both leisure and business travel.
Halifax’s growing reputation as a hub for major conferences and events has also bolstered recovery efforts, with more visitors drawn to the region’s diverse offerings. Additionally, the city’s expanding cruise industry and increasing air traffic have further strengthened the market’s recovery trajectory.
Notable hotel developments
Halifax’s hotel landscape has welcomed several new high-profile properties, reinforcing its position as a key destination in Atlantic Canada. Luxury properties like Muir Halifax, part of Marriott’s Autograph Collection, and Sutton Place Hotel are helping elevate the city’s upscale accommodation offerings.
In addition to these luxury developments, several other hotel projects are contributing to the revitalization of Halifax’s hospitality scene. These new investments have not only enhanced the quality of the city’s hotel inventory but also provided travellers with a broader range of options.
Infrastructure projects driving future growth
Large-scale infrastructure projects, including the ongoing expansion of the Halifax Stanfield International Airport and the QEII Health Sciences Centre redevelopment, are expected to play an essential role in the city’s future growth. The report notes that these projects will generate substantial economic benefits and bring more visitors to the area in the long term.
However, the report cautions that temporary accommodation shortages may arise during peak periods, especially with the influx of construction workers and project-related visitors. This dynamic creates opportunities for short-term rental providers and flexible accommodation solutions to meet the city’s growing needs.
Looking ahead
While the outlook for Halifax’s hotel market is generally positive, HVS advises stakeholders to remain mindful of potential challenges. Supply fluctuations, the pace of new development, and shifts in travel patterns could impact future performance. Nonetheless, the continued economic diversification and infrastructure improvements in Halifax suggest a strong foundation for sustained growth.
With Halifax well-positioned for long-term success, the market offers a compelling opportunity for investors, operators, and developers looking to tap into the momentum of one of Atlantic Canada’s most dynamic cities.
For further details, visit the full report at HVS - Halifax Hotel Market.
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