HENDERSONVILLE, Tenn. — Canada’s hotel industry reported lower performance levels from the month prior, according to STR’s September 2021 data. The country’s performance levels also remained well below pre-COVID-19 levels.
In comparison to September 2019, hotel occupancy is down 20.9 per cent, sitting at 58.2 per cent. The Average Daily Rate (ADR) dropped 14.8 per cent to $152.87. Lastly, the Revenue Per Available Room (RevPAR) decreased 32.6 per cent to $89.
“The typical seasonal pattern and a rise in COVID-19 cases put pressure on demand,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. “Hoteliers usually become more reliant on corporate demand in the fall, as weekday leisure business subsides this time of year. Hotels most lagging in recovery are those reliant on group and corporate demand in addition to international business. The pandemic has had a disproportionate impact on hotels – a hotel with more reliance on corporate and group demand with a higher room count is likely performing far worse than a hotel in the same area with a smaller room count and strong leisure demand.”
Among the provinces and territories, Nova Scotia had the highest September occupancy at 71.6 per cent. At the market level, Vancouver saw the highest occupancy at 64.4 per cent, which was a 28.2 per cent decline from 2019.
In contrast, the lowest occupancy was reported in Quebec at 49 per cent, down 38.8 per cent compared to 2019. At the market level, Montreal reported lowest occupancy at 44.7 per cent, a decrease of 46.8 per cent from 2019.
“Looking beyond the top-line metrics, STR’s monthly P&L data indicates that EBITDA pushed out of the red in July and August, driven by stronger demand,” says Baxter. “Moving forward, the rise in the cost of food, energy and wages will likely challenge the bottom line. Canada’s Consumer Price Index rose 4.4 per cent year-over-year in September which will undoubtedly squeeze margins, placing even more importance on a strong top-line performance. On a more positive note, some strain will be taken off hoteliers over time as most of the inflationary pressure comes from base effects.”
