Low Oil Prices and Oil-Dependent Canadian Lodging Markets

Jason Wight | June 11, 2015

By Jason Wight Jun 11, 2015 Helping Investors Understand Oil-Dependent Lodging Markets in Canada. After three years of stable oil prices, the energy sector was thrown into a tailspin when oil prices plummeted in the second half of 2014—dropping about 40% in a very short time. This rapid decline is having a profound impact on Canadian lodging markets that depend on lodging demand from oil production. For these markets, the low price of oil presents significant operational challenges. Lower demand means lower revenues. Moreover, the preceding era of high oil prices—and the robust lodging demand associated with those high prices—last...