Growth in room rates continues to drive Canada hotel industry
Canada's hotel industry saw performance gains in June 2024, driven by a 3.7% increase in average daily rate (ADR), according to CoStar data.
The article Growth in room rates continues to drive Canada hotel industry first appeared in TravelDailyNews International.
WASHINGTON – Canada hotel industry achieved continued performance gains through average daily rate (ADR), according to CoStar’s June 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
June 2024 (percentage change from 2023):
- Occupancy: 74.5% (+0.5%)
- Average daily rate (ADR): CAD231.04 (+3.7%)
- Revenue per available room (RevPAR): CAD172.10 (+4.2%)
“ADR continues to be the main driver of RevPAR improvement in Canada,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“The 3.7% increase in room rates exceeded the 2.7% inflation reading in June, helping hoteliers absorb rising costs. Occupancy increased marginally again, with Tuesday and Wednesday nights producing the highest actual levels (80%+), suggesting strong business travel.
“Across classes, only luxury and upper upscale hotels saw occupancy growth, while select-service hotels reported a decline once again. With more mortgages being renewed at much higher interest rates, Canadians are feeling the pinch. The split in the data suggests that consumers with enough disposable income to stay in luxury and upper-upscale hotels continue to do so. Meanwhile, cost-conscious guests who stay in select- and limited-service hotels have tightened their belts to a greater degree.”
Among the provinces and territories, Newfoundland and Labrador recorded the highest occupancy level (82.8%), which was 4.6% below 2023.
Among the major markets, Toronto saw the highest occupancy (84.7%), up 1.5% over June 2023. Despite this increase, ADR declined for the second consecutive month, primarily due to a 5.6% decrease in transient rates.
The lowest occupancy among provinces was reported in Saskatchewan (63.3%), up 0.4% against 2023.
At the market level, the lowest occupancy was reported in Edmonton (+7.5% to 62.2%).
The article Growth in room rates continues to drive Canada hotel industry first appeared in TravelDailyNews International.