WASHINGTON – 23 April 2024 – After four consecutive months of year-over-year declines, Canada’s hotel industry reported a marginal lift in transient occupancy, according to CoStar’s March 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
March 2024 (percentage change from 2023):
- Occupancy: 61.0% (-2.1%)
- Average daily rate (ADR): CAD185.23 (+3.9%)
- Revenue per available room (RevPAR): CAD112.99 (+1.7%)
Transient, according to CoStar, includes rooms sold to individuals or groups occupying less than 10 rooms per night.
“The slight increase in transient occupancy indicates that individuals were still choosing to travel during March break and holidays throughout the month,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“Group demand, on the other hand, was down year over year, in part due to a calendar shift, with corporate events tending to steer clear of Easter, in addition to March break. The segment continues to recover from the drop-off during the pandemic with certain months showing stagnating improvement.
“Overall, Canada’s hotel occupancy continued on a downward path in March, with some markets posting double-digit declines. Overall, room rates remain on a positive trajectory.”
Among the provinces and territories, Manitoba recorded the highest March 2024 occupancy level (77.1%), which was 0.9% above 2023.
Among the major markets, Toronto saw the highest occupancy (73.4%), up 2.2% over March 2023.
The lowest occupancy among provinces was reported in Prince Edward Island (32.6%), down 36.3% against 2023. The decline was due to comparison to the province’s Canada Winter Games host period last year.
At the market level, the lowest occupancy was reported in Ottawa-Gatineau (-10.4% to 57.1%).
“Although economic conditions are changing rapidly, it currently appears that Canada will cut interest rates before the U.S.,” said Baxter. “This will likely devalue the Canadian dollar against the U.S. dollar, making Canada an even more affordable destination for Americans. This bodes well for inbound American travel this summer – a segment that continues to make progress toward typical levels achieved before the pandemic.”
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