Horwath HTL releases annual Canada Hotels & Chains report

With a RevPAR of $131 in 2023, marking a 21 per cent increase from 2019, the industry demonstrated remarkable recovery.

Emerging trends include the integration of technology, the resurgence of “bleisure” travel, and a focus on cybersecurity and sustainability. The report provides insights into key performance indicators, establishment distribution, and future projections.

Surveying over 7,100 Canadian hotels and 450,000 guest rooms, it underscores Horwath HTL’s dedication to supporting the hotel industry with comprehensive data and consulting expertise. Some of the highlights include:

• Looking into 2024, the national GDP is forecasted to grow by 0.9 per cent, with inflation expected to end at under 2.5 per cent and interest rates forecast to decline as of mid-year.

• In terms of challenges and opportunities, Canada is expected to avoid a recession in 2024; however, growth will likely be constrained in part due to the higher interest rates. While the U.S. economy’s strength should support exports, risks include geopolitical tensions, presidential elections and persistent inflation.

• “Bleisure” travel, a blend of business and leisure, has made a notable comeback. To cater to this hybrid traveller, hotels are introducing technology lounges equipped with essential tools for remote work. These lounges offer a dual-purpose space where guests can efficiently work and unwind.

• Communication channels are diversifying, with hotels embracing text messaging alongside traditional calls to address customer inquiries promptly. Augmented Reality (AR) and virtual tours enable potential guests to explore properties virtually, aiding in an informed decision-making during the booking process. While Artificial Intelligence (AI) presents opportunities for enhanced guest experiences, caution is advised, particularly concerning the effectiveness of AI-driven chatbots, especially among discerning guests.

• A significant proportion of the Canadian hotel inventory comprises hotels with fewer than 50 rooms (60 per cent of all hotels considered). In fact, hotels under 30 rooms account for 45 per cent of the total Canadian inventory.

• While many hotels (71 per cent of all establishments) are operated as independent properties and comprise an average of 39 guest rooms per establishment, we note that branded hotels make up the largest proportion of guest units, accounting for 55 per cent of total guest rooms available, resulting in an average property size of 121 rooms per establishment.

• A significant majority of the hotel rooms in Canada are located within four provinces: Ontario (29.9 per cent), Alberta (18.3 per cent), British Columbia (18.5 per cent), and Québec (16.7 per cent).