HENDERSONVILLE, Tenn. — Canada’s hotel performance was seasonally lower from the month prior, but higher than the pre-pandemic comparable, according to STR’s September 2022 data.
In comparison to September 2019, occupancy came in at 74.3 per cent (up one per cent); Average Daily Rate (ADR) was $205.17 (up 14.3 per cent) and Revenue Per Available Room (RevPAR) was $152.49 (up 15.5. per cent).
Among the provinces and territories, Nova Scotia recorded the highest September occupancy level (82.1 per cent), which was 1.6-per-cent below the pre-pandemic comparable. Among the major markets, Vancouver saw the highest occupancy (86 per cent), which was a 4.2-per-cent decrease from 2019. The lowest occupancy was reported in Saskatchewan (62.4 per cent), up 11.3 per cent against 2019. At the market level, the lowest occupancy was reported in Edmonton (58.7 per cent), up 10 per cent against 2019.
“Performance levels were expectedly lower than August, but the recovery index to 2019 was back on track in September,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. CoStar Group is the parent company of STR. “Room rates continue to drive performance, as hoteliers try to offset the steep increases in operating costs and the cost of debt which are becoming increasingly apparent as budgets are set for the year ahead. Demand from limited-service hotels is pushing occupancy growth, while full service remains below the 2019 comparable, pulling down the overall metric. This is likely a trend that will continue due to inflation and rising interest rates prompting some guests to trade down.”