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Canada's hotels see strong performance in October

Occupancy exceeds 68% nationwide and approaches 80% in Toronto

In October, hotels in Toronto reported occupancy grew 3.5% year over year to 79.6%. (Getty Images/iStockphoto)
In October, hotels in Toronto reported occupancy grew 3.5% year over year to 79.6%. (Getty Images/iStockphoto)

Canada’s October hotel average daily rate (ADR) exceeded CAD200 for the first time on record, according to data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.

October 2024 (percentage change from 2023):

  • Occupancy: 68.5% (+0.8%)
  • Average daily rate (ADR): CA$200.59 (+2.4%)
  • Revenue per available room (RevPAR): CA$137.32 (+3.2%)

“In addition to the room rate growth, occupancy increased after contracting in September, notably driven by transient and weekday occupancy, pointing to strength from individual business travelers,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.

Among the provinces and territories, Nova Scotia recorded the highest occupancy level (74.7%), which was 0.3% below 2023.

Among the major markets, Toronto saw the highest occupancy (79.6%), up 3.5% over October 2023.

The lowest occupancy among provinces was reported in Prince Edward Island (58.2%), up 3.2% against 2023.

At the market level, the lowest occupancy was reported in Edmonton (-1.0% to 58.4%).

“Looking ahead to 2025, STR and Tourism Economics recently downgraded the RevPAR growth forecast to 1.5%, while ADR is expected to grow more or less in line with inflation. Overall, we are expecting a marginal occupancy decline due to new inventory growth outpacing improvements in demand. Hotel development activity has picked up, with just fewer than 6,000 rooms in the final phase of the pipeline that are expected to open in 2025.

“From a demand perspective, consumers and businesses continue to contend with the lagged impact of higher interest rates, but we are anticipating spending to gradually increase throughout the year, particularly in the latter half of 2025. Group and international travel are expected to drive hotel performance growth next year.”

For more information about the company and its products and services, please visit www.costargroup.com.

Additional Performance Data

CoStar’s world-leading hotel performance sample comprises 85,000 properties and 11 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.

ABOUT COSTAR GROUP, INC.

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. OnTheMarket is a leading residential property portal in the United Kingdom. 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 attracted over 183 million average monthly unique visitors in the second quarter of 2024. 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.

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