Montreal’s hospitality sector is proving to be a significant boost to its commercial real estate market, if recent findings by CBRE Hotels are any indication.
The 16,000-room strong market is seeing its occupancy rates at likely their best levels since the early 2000s. CBRE predicted that the city’s occupied room nights will go up 25% in 2019 compared to the figure a decade prior.
A lot of traffic is magnetized by multiple hotel development and renovation projects, along with the luxury spaces already in the market.
“The hotels are at the end of the food chain,” CBRE senior managing director David Larone told the Montreal Gazette. “We’re dependent on meeting and conference business. Montreal also has tremendous seasonal and weekend business, especially in summer.”
Last year alone, Montréal-Trudeau Airport saw visitor foot traffic amounting to roughly 19 million incoming individuals.
Of the latest constructions, probably the most notable was the Four Seasons Hotel in the downtown core, which began operations earlier this year.
Larone emphasized that the entry of prestigious names like the Four Seasons will further attract investors, which might then feed into a virtuous cycle of high-end hospitality development.
“It is a significant commitment and statement as a belief in Montreal as a great hotel market over a long-term basis.”
Other leading brands to look out for include the Marriott Chateau Champlain renovation and reinvestment project. Construction is also proceeding in earnest for the Hotel Monville, the Hotel William Gray, the Holiday Inn downtown, and Marriot’s AC Hotel and Courtyard projects.