Canada’s hotel industry recorded its highest performance levels in eight months, according to CoStar’s May 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
May 2024 (percentage change from 2023):
- Occupancy: 69.0% (+0.2%)
- Average daily rate (ADR): CA$206.39 (+4.5%)
- Revenue per available room (RevPAR): CA$142.32 (+4.8%)
“Improvement in Canada’s hotel room rates drove a RevPAR lift in May,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“The occupancy lift, however, was marginal, with the metric contracting across the lower-tier hotels, while Upscale through Luxury showed growth. ADR increases across all classes kept RevPAR comparisons in positive territory.
“While group occupancy fell 5.5%, transient grew 2.4%. The growth in the transient segment did not, however, translate to higher rate growth. The lower gain in transient room rates is a trend worth watching, as some markets are seeing rate decline due to the softening of the segment’s demand.”
Among the provinces and territories, British Columbia recorded the highest occupancy level (74.3%), which was 3.3% above 2023.
Among the major markets, Vancouver saw the highest occupancy (83.8%), up 1.2% over May 2023.
The lowest occupancy among provinces was reported in Prince Edward Island (54.5%), down 9.5% against 2023.
At the market level, the lowest occupancy was reported in Calgary (-1.9% to 67.0%).
“Hoteliers are relatively optimistic as we approach the summer high season,” Baxter said. “Recent consumer sentiment reports about domestic leisure travel and slightly lower interest rates have contributed to the optimism, particularly in destinations driven by leisure demand. However, many hoteliers are also reporting shorter booking windows compared to previous years, causing limited visibility into the strength of demand.
“STR’s 2024 forecast reflects slower rate growth, at 1.9%, due to an expected deceleration in the metric during the last three quarters compared to the first. Our downgrade to occupancy was material, with the metric now expected to decrease 0.5% year over year due to lower-than-expected demand as weaker economic conditions take a bigger toll than expected.”
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Additional Performance Data
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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. 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 attract over 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.