HENDERSONVILLE, Tenn. — Canada’s monthly hotel occupancy came in higher than the 2019 comparable for the first time in the pandemic era, according to STR’s July 2022 data. In comparison to July 2019, occupancy came in at 75.5 per cent (up 0.3 per cent), Average Daily Rate (ADR) was $214.77 (up 16.1 per cent) and Revenue Per Available Room (RevPAR) stood at $162.11 (up 16.4 per cent).
In addition to the improvement in occupancy, monthly ADR topped $200 for the first time on record, and RevPAR was at an all-time high. When adjusted for inflation, ADR was also up from 2019 for the first time.
Among the provinces and territories, Prince Edward Island recorded the highest July occupancy level (91.9 per cent), which was 9.3 per cent above the pre-pandemic comparable. Among the major markets, Vancouver saw the highest occupancy (84.7 per cent), which was a 4.2-per-cent decrease from 2019.
The lowest occupancy among provinces was reported in Saskatchewan (64.2 per cent), up 2.8 per cent against 2019. At the market level, the lowest occupancy was reported in Edmonton (60.7 per cent)< up 8.3 per cent.
“The recovery of international travel demand is well on its way, with Statistics Canada reporting that inbound international air travel to Canada neared pre-pandemic levels in June and July,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. “Overall, the outlook for the rest of the year is positive, with the recovery of lagging segments inching closer to 2019 levels. Full-year occupancy is currently forecasted to reach 60 per cent in 2022, while ADR is expected to reach $179. Based on stronger-than-anticipated occupancy and ADR growth, the long-term position has improved, with full-year RevPAR now expected to be in line with pre-pandemic results this year. However, adjusting for inflation extends the full recovery position by a few years. The possibility of a recession and any downward pressure on key metrics related to the pandemic remains a downside risk to the forecast.”
