HENDERSONVILLE, Tenn. — According to STR’s July 2021 data, Canada’s hotel industry reported its highest monthly performance levels since the pandemic began, but still remained low compared to pre-pandemic comparisons in July 2019.
Specifically, hotel occupancy rose to 54.5 per cent, the Average Daily Rate (ADR) was $151.31 and the Revenue Per Available Room (RevPAR) was $85.53. In fact, the occupancy and RevPAR levels were the highest in Canada since February 2020, while the ADR level was the country’s highest since December 2019.
“ADR was the standout metric, as it inched closer to 2019 levels and hoteliers reaped the rewards of high-paying transient leisure guests. Rate at hotels in small towns exceeded 2019 levels by one per cent, which was the first indicator to reach pre-pandemic levels. Rates in resort locations also showed strong growth, reaching $251, up from $182 in June,” says Laura Baxter, director of Canada’s hospitality analytics at CoStar Group. “August is typically the strongest month for Canada’s hotel industry and this year will be no exception, with month-to-date metrics already showing an improvement on July levels. Occupancy during the first two weeks was up 10 points to 64 per cent. That occupancy figure includes international demand now that fully vaccinated Americans can cross the land border and inbound international air passengers have less restrictions upon arrival.”
The highest occupancy among the provinces was reported in B.C. while Montreal and P.E.I. reported the lowest occupancy.
“STR’s updated forecast for the country shows RevPAR at $54 for 2021, a more positive outlook for the year due to less travel restrictions underpinned by a strong economy,” says Baxter. “In line with seasonal trends, Q4 is expected to generate softer results than Q3, as hoteliers typically reply on business demand during the fall months. Based on the spike in COVID-19 cases, the expected pent-up corporate demand from the American and domestic source markets may be more muted than originally anticipated.”