HENDERSONVILLE, Tenn. — Canada’s hotel performance has reached its highest of the pandemic-era, with monthly hotel room rates reaching an all-time high, according to STR’s June 2022 data.
In comparison to June 2019, occupancy came in at 71.7 per cent (down 2.8 per cent), Average Daily Rate (ADR) was $197.87 (up 8.8 per cent) and Revenue Per Available Room (RevPAR) sat at $141.97 (up 5.7 per cent). In addition to the highest ADR level on record, the June RevPAR level was the country’s highest since August 2019, while occupancy was its highest since September 2019.
Among the provinces and territories, Nova Scotia recorded the highest June occupancy level (79.7 per cent), which was 5.5. per cent above the pre-pandemic comparable. In contrast, the lowest occupancy level was reported in Alberta (62.1 per cent), down 2.1 per cent against 2019.
Among the major markets, Toronto saw the highest occupancy (84.4 per cent), which was a 0.9 per-cent-increase from 2019. Montreal, which hosted the Canadian Grand Prix, reached an occupancy level of 75.8 per cent.
“June was an exceptional month for Canada hotels, with RevPAR exceeding 2019 levels for the first time since the pandemic began, and, on nominal terms, reaching the highest level for any June on record,” said Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. CoStar Group is the parent company of STR. “Notably, the RevPAR index across all location types was over 100, including at airport and urban hotels, for the first time since the pandemic started. The main driver of the RevPAR recovery is still ADR, which has been higher than 2019 levels for four consecutive months. Meanwhile, occupancy remains slightly below the pre-pandemic comparable, as a small gap in group and weekday demand is holding back the metric from full recovery. Despite the deficit, the rebound in group demand is also going from strength to strength, reaching 2.5 million room nights in June, up from 2.9 million in June 2019. Group ADR also exceeded 2019 for the first time. Although group demand is expected to fall in line with seasonal trends over the remainder of the summer, it will play a pivotal role in the fall and spring if momentum from leisure demand fades.”