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FEATURE PROFILE: Feature from the FALL 2024 ISSUE of STAY Magazine
Intelligence
Canada hotels record first transient occupancy increase in four months
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.
March 2024 (percentage change from 2023):
Occupancy: 61.0 per cent (-2.1 per cent)
Average daily rate (ADR): CAD185.23 (+3.9 per cent)
Revenue per available room (RevPAR): CAD112.99 (+1.7 per cent)
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,” says 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 per cent), which was 0.9 per cent above 2023. Among the major markets, Toronto saw the highest occupancy (73.4 per cent), up 2.2 per cent over March 2023.
The lowest occupancy among provinces was reported in Prince Edward Island (32.6 per cent), down 36.3 per cent 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 per cent to 57.1 per cent).
“Although economic conditions are changing rapidly, it currently appears that Canada will cut interest rates before the U.S.,” says 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.”
