WASHINGTON — According to data from CoStar, September 2024 marked the first month-over-month decline in occupancy for Canadian hotels since January of the same year. The overall occupancy rate was 74 per cent, a decrease of 1.8 per cent from 2023.
Despite this dip in occupancy, the Average Daily Rate (ADR) increased by 2.6 per cent to $227.99, and the Revenue Per Available Room (RevPAR) also saw a slight rise of 0.8 per cent to $168.69. Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada, attributed the decline to reduced group and transient demand.
Luxury hotels continued to record higher occupancy growth, while lower-end hotels contributed to the decline. This indicates that individuals with disposable income continue to spend on discretionary items.
Regarding provinces and territories, Nova Scotia recorded the highest occupancy level at 82.4 per cent, up by 1.7 per cent from 2023. Conversely, Saskatchewan reported the lowest occupancy among provinces at 62.4 per cent, a two-per-cent decrease from 2023.
The impact of Taylor Swift’s Eras Tour in Canada was also prominent, with high hotel occupancy rates predicted for November and December in cities such as Toronto and Vancouver.
