What do you think of this project?

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This is from April 2025 but here's RevPAR data from CBRE.
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IanO said:
The challenge is that our RevPAR (revenue per available room) is exceptionally low, under 100 if I recall correctly. Our ADR (Avg. Daily Rate) is also very weak and at a level that hoteliers have told me that it's is a spot too low to justify major investments and occupancy continues to fall to somewhere in the mid 50s.

It's a challenge given our market, lack of business travel and WEM drawing people west from potential Downtown properties to boost those numbers.
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For one reason and one reason ONLY….Mountain Parks tourists…..without them…..they’d be on par with us…..
 
Winnipeg is the government as well as business/financial centre for Manitoba so they get a lot of travel for each.

I can't speak for the condition of their hotels, but here it mostly seems the same old, same old ones downtown for decades with the exception of the of the JW Marriott, so it is likely tired product here is part of the reason for this.
 
MakeYEGGreatAgain said:
^ Winnipeg RevPAR is 30% higher than Edmonton. I don't think tourists are lining up to visit Winnipeg. it's the product mix which in Edmonton is heavily tilted toward crap and many hotels that require a complete flip.
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RevPAR doesn't necessarily tell you what the product mix of hotel rooms in a city. RevPAR = Total Revenue / Number of Rooms It's possible that Winnipeg has fewer hotel rooms than Edmonton which results in Winnipeg having a higher RevPAR (have not researched). The ADR doesn't necessarily reveal the product mix of hotel rooms in a city either as ADR is influenced by the supply and demand for rooms and all the external factors that create a market for any given location.
 
^ Not only that but it doesn't account for the nature of specific needs... example re Edmonton: downtown with the ICE district and two major post-secondary campuses could define a different need than another part of the City. Economically speaking RevPAR is just one measurement out of a field of 22 and so by itself it is basically meaningless.
 
^ You're splitting hairs again, 'O. There are many variables that go into hotel "go-no-go" decisions. I said that RevPAR standing alone is meaningless which you seem to agree with. Here are some variables that I have worked with when designing hospitality writ large: 1. Demand relative to target audience (this one alone might be the main consideration in a second hotel to be located in the ICE district), 2. Local Economy (improving with additional downtown population growth and with new population generators -- Fan Park, MacU & NorQuest expansion for example), 3. Location (always up there on the importance meter), 4. Competitive Landscape (as mentioned before Marriott might have a lock on the ICE District demand), 5. Revenue Streams (Occupancy X ADR), 6. Diversification (e.g. pairing Food & Beverage and localized events with Room Rentals), 7. Operating Costs relative to location, 8. Projected Profitability, 9. Capital Costs (here the Connect location has an advantage in already-owned land, already-built foundation, built-in parking and structural superstructure in-place), 10. Size and scale (paired with other potential uses -- e.g. rental apartments, retail, etc.. 11. Level of Service and Amenities sought after (aiming for a different audience than the existing ICE hotel, 12. Revenue Management, 13. Brand Reputation for the client sector being sought after), 14. Seasonality (client potential for hockey, events, etc. that focus on alternative times-of-year), 14. Economic Conditions (not only current but projected in the near, middle and long term), 15. Regulatory Environment with CoE, 16. Projected ROI, 17. Construction Demand (costs of materials, labor, etc.), 18. Work force availability (the challenge to employ hotel labor has become trickier as of late), 19. Interest rates on construction loans, 20. Supply chain for operational needs, 21. Comparable alternative site uses, and 22. RevPAR
 
Irrespective of all the KPIs, it will not change the fact that Edmonton saw the construction of only two hotels downtown in the last 35 years. (JW and the Double Tree - formerly Hyatt Place).

Not a good way to attract conventions, major events, etc....Build it and they will come! In Edmonton, it's always: when the numbers are better, we will think about it.
 
MakeYEGGreatAgain said:
Irrespective of all the KPIs, it will not change the fact that Edmonton saw the construction of only two hotels downtown in the last 35 years. (JW and the Double Tree - formerly Hyatt Place).

Not a good way to attract conventions, major events, etc....Build it and they will come! In Edmonton, it's always: when the numbers are better, we will think about it.
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Newer hotels would have more appeal and draw more people. You can't improve revenue just with the same old mostly tired hotel stock from the 1970's.
 
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