TORONTO — Cushman & Wakefield has released its Hospitality Innsights Q3 2023 Hospitality Report. The report provides an update for Canada’s hotel performance, the outlook for 2024 growth and key takeaways from hospitality conferences.
Canada Hotel Performance Update
- Hotel RevPAR performance across Canada grew by 22 per cent in Q3 2023 versus 2022, driven by demand growth of 10 per cent and ADR growth of 11 per cent
- Manitoba recorded 38 per cent RevPAR growth as a result of a strong recovery in Winnipeg
- In Newfoundland, RevPAR increased by 37 per cent, led by a strong leisure travel season and a strengthening of demand in the shoulder seasons
- Ontario and Quebec also enjoyed stronger RevPAR growth as tourism in these provinces continues to grow
- In terms of major cities, the strongest RevPAR growth in year-to-date (YTD) Q3 was seen in Winnipeg at 44 per cent, followed by Toronto at 31 per cent, Montreal at 29 per cent and Ottawa and Vancouver at 27 per cent
- All other markets showed RevPAR growth between 21 per cent and 26 per cent, with the exception of Victoria
2024 Growth Outlook
- As of September 2023, national RevPAR stood at $137.43 as compared to $113.43 in 2019, a 21-per-cent improvement
- Looking at 2024, growth expectations have been tempered by the recent run up in rates and a weaker economic outlook which is expected to result in a decline in travel related consumer spending
- Nationally, and in the majority of markets across the country, most forecasts predict more normalized RevPAR growth in the range of five per cent in the coming year
To download the full report, click here.