HENDERSONVILLE, Tenn. — The Canadian hotel industry recorded positive year-over-year results in the three key performance metrics during 2018, according to data from STR.
In comparison with 2017, the industry reported a one-per-cent increase in occupancy to 66.3 per cent, a 4.3-per-cent lift in Average Daily Rate (ADR) to $163.40 and 5.3-per-cent growth in Revenue Per Available Room (RevPAR) to $ 108.39. The absolute-occupancy level for 2018 was the highest the country has seen since 1999.
STR analysts point to an influx of visitors as a main driver of healthy hotel demand (up two per cent). Additionally, supply growth (up one per cent) remained modest, further strengthening hotelier pricing power.
In absolute values, August was Canada’s top month of the year for each of the three metrics, with occupancy at 80.4 per cent, ADR at $185.02 and RevPAR at $148.74.
British Columbia recorded the country’s largest year-over-year increase in RevPAR for 2018 (up 9.3 per cent to $137.18), due primarily to the largest lift in ADR (an 8.6-per-cent increase to $193.58). Alberta saw the second-largest jump in RevPAR (up six per cent to $88.05). Overall, 10 of the 11 reporting provinces and territories reported RevPAR growth.
Saskatchewan experienced the largest lift in occupancy (up six per cent to 56.2 per cent), but the second-steepest drop in ADR (down 1.5 per cent to $117.71).
Newfoundland and Labrador registered the steepest declines in all three key performance metrics, reporting a 13.6-per-cent drop occupancy (to 54.5 per cent), a 4.5-per-cent decrease in ADR and a 17.5-per-cent drop in RevPAR. Quebec experienced the second-largest drop in occupancy, falling 2.2 per cent to 69.6 per cent.