Bed with white pillows and bed sheets in hotel room.
Photo Credit: iStockPhoto.com/portfolio/whyframestudio

HENDERSONVILLE, Tenn. — Canada’s hotel Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) were the highest for any year on record, according to STR’s 2022 data.

In comparison to 2019, occupancy was 61.1 per cent (down six per cent); ADR was $181.73 (up 10 per cent); and RevPAR was $111.06 (up 3.5 per cent).

In December specifically, Canada followed its typical seasonal trend with slightly lower occupancy and RevPAR performance than November, but improved comparisons to 2019. Occupancy was up 8.4 per cent to 53.3 per cent; ADR was up 16 per cent to $178.15; and RevPAR was up 25.7 per cent to $95. During the month, hoteliers benefitted from strong group demand related to the United Nations Biodiversity Conference (COP 15) in Montreal and a resurgence in holiday parties.

Among the provinces and territories, British Columbia recorded the highest 2022 occupancy level (66.5 per cent), which lagged the pre-pandemic comparable by 4.5 per cent. Among the major markets, Vancouver recorded the highest occupancy (72.9 per cent), which was 8.2 per cent behind 2019. New Brunswick (54.7 per cent) saw the lowest occupancy among provinces, down 8.1 per cent against 2019. At the market-level, the lowest occupancy was reported in Edmonton (51.8 per cent), which was 4.1 per cent below the 2019 comparable.

“Canada’s hotel industry showed exceptional recovery in 2022. Not only did ADR and RevPAR return to pre-pandemic levels, which was much faster than originally anticipated, but both metrics also reached record highs,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. CoStar Group is the parent company of STR. “The room-rate led recovery proved to be a winning strategy that resulted in a rebound that was quicker than previous downturns and provided stronger profits for many. The other key driver of recovery was strong transient leisure demand, as households used savings from earlier in the pandemic to supplement travel and hotel spending. Occupancy approached or surpassed 2019 levels in the second half of the year, but due to a much slower start as the Omicron wave hit, the full-year level lagged, down six per cent compared to 2019. Certain segments have fallen behind others, such as corporate hotel demand as it evolves alongside work trends. Demand from international source markets had also been slower to recover – in line with the unwinding of pandemic-related restrictions at the border.”

She adds although Canada is expected to enter a moderate recession in 2023, the outlook for the country’s hotel industry remains positive, with more recovery set to take place. “Bucking the trend from last year, year-on-year occupancy growth is anticipated to take the leading position, while ADR growth is forecast to pull back but remain in positive territory.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.