Mar 7, 2024
Hotels in major Canadian cities have now fully recovered: report
, BNN Bloomberg
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During the height of the pandemic, travel was among the hardest-hit industries, but a new report suggests the hotel industry is stronger than before.
The Canada Hotel Market Report from Avison Young, released Thursday, shows hotels in Canada’s six most populous cities (Toronto, Montreal, Vancouver, Edmonton, Calgary and Ottawa) saw double-digit growth in 2023 and are now stronger in three key metrics compared to 2019.
The report found the average daily rate reached $200.10 in 2023, compared to $165.17 in 2019, while revenue per available room climbed by $24.16 and occupancy climbed by 0.7 per cent.
The three key figures have climbed every year since 2020.
“Overall, the positive year-over-year growth across all performance metrics signals a promising trajectory for the Canadian hospitality industry,” the report states.
Overall, the priciest hotels have emerged as the largest benefactors.
The report found luxury, upper upscale and upscale hotels have each seen double-digit year-over-year growth in terms of occupancy, while year-over-year growth in revenue per available room eclipsed 20 per cent for upper upscale and upscale hotels.
What’s next?
The report suggests the hotel resurgence may be short-lived, as economic pressures may have Canadians looking to cut travel costs.
“Despite economic pressures and the potential for a recession, hotels have proven adept at navigating difficult times and emerging successful,” the report states.
“While growth is anticipated in 2024, it may not be as robust as in the previous year, with the market likely to move towards more normalized conditions.”
