Canada's Hotel Industry: Positive Momentum Despite Normalization

Toronto, Canada - [Date] Canada's hotel industry shows positive signs of recovery following the COVID-19 pandemic, according to recent data from tourism economics and CoStar Group [1, 2]. While the breakneck growth of 2022 has slowed, key performance indicators (KPIs) remain strong, exceeding pre-pandemic levels in some areas.

Year-over-Year Occupancy on the Rise

National hotel occupancy rates continue a positive trajectory. In August 2023, occupancy reached a four-year high of 77.4%, representing a 1.4% increase compared to August 2022 [1]. This positive trend reflects a return to normalcy in travel patterns, with both transient and weekend stays nearing pre-pandemic levels.

Average Daily Rates Maintain Momentum

The average daily rate (ADR) also witnessed positive growth. August 2023 saw an ADR of CAD$226.04, a 5.8% increase year-over-year [1]. This suggests travelers are comfortable with current pricing structures, potentially due to pent-up demand and inflationary pressures.

Urban vs. Resort Performance

Laura Baxter, Director of Hospitality Analytics - Canada for CoStar Group, highlights the potential for continued growth in urban centers: "The return of group and international travel is expected to further drive performance, particularly benefiting Canada's largest cities" [1]. Resort properties, while showing improvement, may face increased competition from international destinations as travel restrictions ease.

Looking Ahead

The Canadian hotel industry is well-positioned for continued growth. While the pace of recovery may moderate, factors like the return of international travel and business conferences should provide a further boost to occupancy and ADR. Hoteliers who remain adaptable and cater to evolving guest preferences are poised to capitalize on this positive momentum.

A Special Thank You

HSMAI Toronto extends its gratitude to Laura Baxter and CoStar Group for sharing valuable insights into the Canadian hotel market. This data empowers industry stakeholders to make informed decisions and navigate the future with confidence.

Resources

• [1] CoStar Group: "Canada hotel occupancy reached four-year high in August" (press release, September 21, 2023) ([Link to press release on CoStar website])
• [2] RENX: "Canada's lodging market normalizing, but growth continues" (article, October 26, 2023) ([Link to article on RENX website])

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