MONTREAL — Global hospitality consulting brand Horwath HTL released its Canadian Hotel Industry Report today, which shows Canada has been recording continued increases in occupancy and average daily rate (ADR) over the past six years and 2016 will be no exception.
Despite difficulties registered by three of its 10 provinces — including the ongoing oil crisis and the low cost of crude — Canada’s year-to-date June trends indicate national occupancy will likely remain comparable to that of 2015, while the national ADR should increase by three per cent.
The year-to-date June 2016 provincial occupancy rates fluctuate between 48 and 66 per cent, resulting in a Canadian occupancy rate of 61 per cent; representing a very slight shortfall of only 0.3 percentage points over year-to-date 2015. The three provinces with the greatest increases in occupancy rates are Prince Edward Island, Nova Scotia and British Columbia, followed by New Brunswick, Ontario, Manitoba and Quebec — each registering an increase of one to six percentage points.
Occupancy rates in Newfoundland & Labrador, Saskatchewan and Alberta, however, declined during this six-month period, dropping three to seven percentage points.
Additional report findings include:
- While two cities have more or less stagnated in occupancy (Montreal and Ottawa), four have registered increases of approximately three percentage points (Toronto, Vancouver, Quebec City and Halifax)
- Calgary — at the heart of the Canadian oil crisis — continues to report decreasing occupancies
- Strong increases in ADR (estimated at more than four per cent) were recorded in B.C., P.E.I., N.S., and Ontario. Quebec and N.B. are estimated to have recorded average growth rates of between one per cent and three per cent
- While occupancy is trending to come in at the same level as year-end 2015 (64 per cent), ADR at a national level continues to trend upwards, increasing by close to three per cent during the first half of 2016
- 2016 should be another strong year for Canada, with RevPAR ending at close to three per cent higher than in 2015
The full report can be found here.