CoStar Reports Canada Hotel Performance Remained on Upward Trajectory in September
Among the major markets, Vancouver saw the highest occupancy (86.6%), which was 0.5% ahead of September 2022.
Canada’s hotel industry continued a stretch of year-over-year performance growth, according to CoStar’s September 2023 data.
September 2023 (percentage change from September 2022):
- Occupancy: 75.3% (+1.5%)
- Average daily rate (ADR): CAD222.02 (+8.1%)
- Revenue per available room (RevPAR): CAD167.14 (+9.7%)
“Although economists are predicting an economic downturn, Canada’s hotel sector remains on solid footing,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“Room rates continue to drive overall performance, with healthy growth across all segments – that balance remains one of the biggest success stories this year. Occupancy, on the other hand, remains nuanced among the segments.
“Transient demand grew a staggering 14% against 2019, while group was down 16% against pre-pandemic levels, in line with the trends seen over the past few months. Weekend and weekday occupancy remained ahead of 2019 levels, suggesting business transient demand has improved. Submarkets most reliant on large national accounts, however, are still lagging.”
Among the provinces and territories, Nova Scotia recorded the highest September occupancy level (81.1%), which was 0.7% below 2022.
Among the major markets, Vancouver saw the highest occupancy (86.6%), which was 0.5% ahead of September 2022.
The lowest occupancy among provinces was reported in Saskatchewan (63.5%), up 2.6% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+8.8% to 63.8%).
“Weekday occupancy in Canada’s largest urban centers continues to lag, but downtown Toronto saw a vast improvement in the metric, down just five percentage points. While September room rates are usually the highest of the year in the area, ADR pushed to $405 – a record-high for downtown Toronto.”
CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. For more information about the company and its products and services, please visit www.costargroup.com.