Saturday, November 23, 2024
Canada’s hospitality sector hit a historic high in October 2024, with 68.5% occupancy and ADR surpassing CAD 200, marking a record-breaking performance.
In October 2024, Canada’s hotel industry achieved a historic milestone as the average daily rate (ADR) exceeded CAD 200 for the first time, according to data from CoStar, a leading real estate marketplace and analytics platform.
The month recorded an occupancy rate of 68.5%, reflecting a 0.8% year-over-year increase. ADR climbed by 2.4% to CAD 200.59, while Revenue per Available Room (RevPAR) rose by 3.2% to CAD 137.32. The growth in occupancy was primarily fueled by transient and weekday bookings, highlighting a surge in business travel.
Among Canadian regions, Nova Scotia led with the highest occupancy rate at 74.7%, though this represented a slight 0.3% dip from 2023. Toronto outperformed other major markets with a notable 79.6% occupancy rate, up 3.5% compared to the previous year. On the other hand, Prince Edward Island recorded the lowest occupancy rate among provinces at 58.2%, while Edmonton held the lowest among markets at 58.4%.
Looking ahead to 2025, STR and Tourism Economics have revised the RevPAR growth projection to 1.5%. ADR is expected to grow in line with inflation, but a marginal decline in occupancy is anticipated as new hotel inventory outpaces demand. Approximately 6,000 additional hotel rooms are expected to be introduced in the coming year.
On the demand side, elevated interest rates remain a hurdle for both consumers and businesses. Despite this, spending is forecasted to pick up gradually through 2025, particularly in the second half, driven by increases in group and international travel.
