Hotel-room boom causes rates to double

The Brandon hotel sector is seeing one of its busiest stretches in years, with soaring demand driving room shortages and pushing nightly rates to two times their usual levels.

The squeeze has been fuelled by wildfire evacuations, industrial projects and a full slate of local events.

The turning point came in early June when wildfire evacuees were relocated to Brandon through the Canadian Red Cross, Travelodge by Wyndham Brandon general manager Alexey Volosnikov told the Sun.

“Basically, it filled us up to 70 per cent right away,” said Volosnikov, who also operates Colonial Inn and Keystone Motor Inn.

“Then Koch Fertilizer sent in crews for their annual maintenance project, and that meant we were completely booked. At that point, the few remaining rooms were selling for $250 to $300 a night — more than double the normal rate.”

The average pre-summer rate at his hotels was about $100, but once occupancy tightened, rates spiked across the city.

“It’s just revenue management,” Volosnikov said. “When the demand is huge and you have only a couple of rooms left, you know they’ll sell — even at a higher rate. And it wasn’t just us; every hotel in Brandon adjusted their rates. If you looked on booking sites, prices were crazy high across the board.”

Volosnikov said the management’s three hotels alone accounted for more than 100 evacuees at the peak, and he believes the decision to base a Red Cross office in Brandon this year played a major role in strengthening demand compared to previous summers. “Last year, evacuees were mostly managed out of Winnipeg,” he said. “This year, with more fires and a new office here, Brandon became a hub.”

For operators, the boom has been a welcome contrast to pandemic-era challenges.

“This season was very strong for business,” Volosnikov said. “We were fully booked for weeks, and from a revenue standpoint, it’s been much better than last year.”

Brandon’s experience reflects broader industry dynamics, Manitoba Hotel Association president Michael Juce told the Sun.

“The Koch Fertilizer refurbishment has been a big driver of demand in that market,” Juce said. “But we’re also seeing across the province that costs have gone up significantly — property taxes, utilities, financing costs. So while rates have climbed, so have expenses. Hotels are managing that balance.”

Juce said when occupancy levels reach 90 per cent or higher, rate spikes are inevitable because only premium suites are often left.

“That sometimes explains why the last available rooms are significantly above the average,” he said. “A customer might see a $200 rate midweek and think that’s unusual, but in reality, the standard rooms were already sold out.”

Brandon’s run of high occupancy is expected to continue into the fall.

The Provincial Exhibition of Manitoba’s Ag Ex, one of the city’s biggest annual events, opens at the Keystone Centre in late October, drawing agricultural producers and industry visitors from across the Prairies.

While Juce has not heard concerns about capacity, he acknowledged that Brandon’s hotels will be under pressure to accommodate demand.

The situation has also reignited debate over whether Brandon needs additional hotel development. With roughly 12 hotels in the city, Volosnikov said supply is lagging behind demand, especially during peak periods.

“I’ve always felt Brandon could use more hotels,” he said. “For major events, construction projects and sporting tournaments, the city just doesn’t have enough rooms. The demand is there.”

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