WASHINGTON — Canada’s hotel industry achieved continued performance gains through Average Daily Rate (ADR), according to CoStar’s June 2024 data.
June 2024 (percentage change from 2023)
- Occupancy: 74.5 per cent (up 0.5 per cent)
- Average Daily Rate (ADR): $231.04 (up 3.7 per cent)
- Revenue Per Available Room (RevPAR): $172.10 (up 4.2 per cent)
Among the provinces and territories, Newfoundland recorded the highest occupancy level (82.8 per cent), which was 4.6 below 2023.
Among the major markets, Toronto saw the highest occupancy (84.7 per cent), up 1.5 per cent over June 2023. Despite this increase, ADR declined for the second-consecutive month, primarily due to a 5.6-per-cent decrease in transient rates.
The lowest occupancy among provinces was reported in Saskatchewan (63.3 per cent), up 0.4 against 2023.
At the market level, the lowest occupancy was reported in Edmonton (up 7.5 per cent to 62.2 per cent).
“ADR continues to be the main driver of RevPAR improvement in Canada,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. “The 3.7-per-cent increase in room rates exceeded the 2.7 per cent inflation reading in June, helping hoteliers absorb rising costs. Occupancy increased marginally again, with Tuesday and Wednesday nights producing the highest actual levels (80 per cent plus), suggesting strong business travel. Across classes, only luxury and upper upscale hotels saw occupancy growth, while select-service hotels reported a decline once again. With more mortgages being renewed at much higher interest rates, Canadians are feeling the pinch. The split in the data suggests that consumers with enough disposable income to stay in luxury and upper-upscale hotels continue to do so. Meanwhile, cost-conscious guests who stay in select- and limited-service hotels have tightened their belts to a greater degree.”
