After four consecutive months of year-over-year declines, Canada’s hotel industry reported a marginal lift in transient occupancy, according to CoStar’s March 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
March 2024 (percentage change from 2023):
- Occupancy: 61.0% (-2.1%)
- Average daily rate (ADR): CA$185.23 (+3.9%)
- Revenue per available room (RevPAR): CA$112.99 (+1.7%)
Transient, according to CoStar, includes rooms sold to individuals or groups occupying less than 10 rooms per night.
“The slight increase in transient occupancy indicates that individuals were still choosing to travel during March break and holidays throughout the month,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“Group demand, on the other hand, was down year over year, in part due to a calendar shift, with corporate events tending to steer clear of Easter, in addition to March break. The segment continues to recover from the drop-off during the pandemic with certain months showing stagnating improvement.
“Overall, Canada’s hotel occupancy continued on a downward path in March, with some markets posting double-digit declines. Overall, room rates remain on a positive trajectory.”
Among the provinces and territories, Manitoba recorded the highest March 2024 occupancy level (77.1%), which was 0.9% above 2023.
Among the major markets, Toronto saw the highest occupancy (73.4%), up 2.2% over March 2023.
The lowest occupancy among provinces was reported in Prince Edward Island (32.6%), down 36.3% against 2023. The decline was due to comparison to the province’s Canada Winter Games host period last year.
At the market level, the lowest occupancy was reported in Ottawa-Gatineau (-10.4% to 57.1%).
“Although economic conditions are changing rapidly, it currently appears that Canada will cut interest rates before the U.S.,” said Baxter. “This will likely devalue the Canadian dollar against the U.S. dollar, making Canada an even more affordable destination for Americans. This bodes well for inbound American travel this summer – a segment that continues to make progress toward typical levels achieved before the pandemic.”
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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.