Canada’s hotel industry reported its highest average daily rate (ADR) and revenue per available room (RevPAR) for any month on record, according to CoStar’s July 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
July 2023 (percentage change from July 2022):
- Occupancy: 75.6% (+0.1%)
- Average daily rate (ADR): CAD232.13 (+7.7%)
- Revenue per available room (RevPAR): CAD175.42 (+7.8%)
In addition to the monthly ADR and RevPAR levels, Canada’s occupancy level was its highest since August 2022.
“Canada’s hotel room rates were once again the standout metric,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“The increased cash flow allows hoteliers to pay for higher debt service costs, other costs through the bottom line, property improvement plans and general capital expenditure projects which most fell behind on during the pandemic.
“Although there was considerable ADR growth across most segments, transient weekend rates keep growing, demonstrating the willingness and ability of the individual leisure traveler to pay higher rates. Bankers, consultants, and federal employees are not traveling to the same extent as they were pre-pandemic, which shows in the lag of recovery of weekday occupancy in our largest urban markets.”
Among the provinces and territories, Newfoundland and Labrador recorded the highest July occupancy level (87.9%), which was 5.0% above 2022.
Among the major markets, Vancouver saw the highest occupancy (87.0%), which was 2.4% ahead of July 2022.
The lowest occupancy among provinces was reported in Saskatchewan (63.1%), down 1.8% against 2022. At the market level, the lowest occupancy was reported in Edmonton (-2.9% to 58.8%).
“STR and Tourism Economics’ most recent forecast has been upgraded, with full-year ADR expected to be up 8.6% compared to last year,” Baxter said. “The upward revision was due to higher second-quarter room rates than anticipated and expectations for a potential recession being pushed forward. This year’s upgrade, however, has impacted 2024 predictions, with RevPAR now expected to grow 1.8%, down two percentage points from the previous forecast. That downgrade reflects weakness in the overall economy and lower anticipated consumer spending.”
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About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract nearly 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.