HENDERSONVILLE, Tenn. — Canada’s hotel performance fell from September, but Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) were higher than the pre-pandemic comparables, according to STR’s October 2022 data.
Overall, occupancy came in at 66.8 per cent (down one per cent); ADR came in at CAD$179.70 (up 13.3 per cent); and RevPAR came in at CAD$120.05 per cent (up 12.3 per cent).
Among the provinces and territories, Nova Scotia recorded the highest October occupancy level (79.9 per cent), which surpassed the pre-pandemic comparable by nine per cent. Among the major markets, Vancouver recorded the highest occupancy (77.6 per cent), which was 1.7 per cent below October 2019. In contrast, Alberta saw the lowest occupancy among provinces (56.3 per cent), up three per cent against 2019, and Edmonton reported the lowest occupancy at the market level (54.1 per cent), which was 0.3 per cent above the 2019 comparable.
“With the height of summer travel behind us, Canada’s lower hotel performance in October was expected,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. CoStar Group is the parent company of STR. “The top-line performance metrics, however, are still making an impact. RevPAR, which is historically just over $100 for the month, reached $120, marking Canada’s strongest RevPAR for any October on record. Room rates continue to drive recovery despite a decline in the ADR index over last month. When adjusted for inflation, rate growth remains in positive territory, but only marginally. Many in the industry are closely monitoring the strength of the transient leisure segment, which has led recovery so far. The dynamic between the leading and lagging segments remain intact, with transient and weekend occupancy leading, up five per cent and three per cent compared to 2019, respectively. Meanwhile, group and week-day occupancy, the latter of which can be used as a proxy for business travel demand, remained below pre-pandemic performance, down 11 per cent and three per cent respectively.”