Global News

Canada hotel performance surpassed pre-pandemic levels in January

Canada’s hotel performance fell slightly from the previous month but surpassed the 2019 comparables, according to STR‘s January 2023Canada hotel construction pipeline data.January 2023 (percentage change from 2019)

  • Occupancy: 50.7% (+0.3%)
  • Average daily rate (ADR): CAD167.96 (+14.0%)
  • Revenue per available room (RevPAR): CAD85.11 (+14.2%)

“Canada’s hotel industry started off the year on a high note, as performance came in above the 2019 benchmark,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR.  “Despite downward pressure on household disposable incomes, tourism spending remained elevated,” Baxter said. “People have chosen to prioritize experiences, including hotel stays, evidenced by transient demand that was 9% above the pre-pandemic comparable and showed no signs of pullback from the latter half of 2022. Meanwhile, group demand came in 14% below 2019 levels but is expected to pick up momentum throughout the year as more typical patterns start to emerge and the industry benefits from events taking place that were cancelled earlier in the pandemic.”Among the provinces and territories, Manitoba recorded the highest January occupancy level (64.3%), which surpassed the pre-pandemic comparable by 20.9%. Among the major markets, Vancouver reported the highest occupancy level (63.9%), which was 1.3% behind 2019. Prince Edward Island (36.3%) saw the lowest occupancy among provinces, up 14.1% against 2019. At the market-level, the lowest occupancy was reported in Edmonton (43.2%) which was 6.4% below the 2019 comparable. “Typically, room demand declines in a recession, but STR’s latest forecast projects growth in 2023 with further demand rebound across all segments expected to push occupancy in line with the 2019 benchmark,” said Baxter. “The assumption that Canada will enter a moderate recession this year remains consistent, with GDP contracting 1.3%. The bulk of ADR recovery took place in 2022, but with the industry laser-focused on the benefits of strong room rates, the forecast is set for the metric to remain ahead of 2022.”

Tags: Canada Hotel, hotel performance, January, pre-pandemic levels, surpassed


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