After four consecutive months of year-over-year declines, Canada’s hotel industry reported an increase in occupancy, according to CoStar’s April 2024 data.
April 2024 (percentage change from 2023):
Occupancy: 64.0 per cent (+2.7 per cent)
Average daily rate (ADR): CAD188.39 (+5.1 per cent)
Revenue per available room (RevPAR): CAD120.64 (+8.0 per cent)
“The year-over-year growth in occupancy suggests that downward pressure on hotel demand related to weaker economic conditions will not be linear, as the period from December through March suggested,” says Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“A calendar shift also influenced results, with some corporate groups and transient demand being pushed to April to avoid the Easter break and other holidays. The reverse occurred with Easter in April 2023, so this year’s growth rates are not exactly apples to apples. However, when combining March and April, demand grew 1 per cent year over year.”
“Room rate growth accelerated in April, mostly driven by groups which posted an increase of 10.5 per cent. Occupancy in the segment also stood out, up 3.7 per cent, benefitting from weekday group demand.”
Among the provinces and territories, Ontario recorded the highest April 2024 occupancy level (68.1 per cent), which was 4.2 per cent above 2023.
Among the major markets, Vancouver saw the highest occupancy (79.3 per cent), down 0.6 per cent over April 2023.
The lowest occupancy among provinces was reported in Prince Edward Island (41.5 per cent), up 2.2 per cent against 2023. At the market level, the lowest occupancy was reported in Edmonton (+2.5 per cent to 60.9 per cent).
“When looking at performance by class, luxury hotels reported a 4 per cent lift in occupancy in April,” says Baxter. “Higher-end hotels have posted marginal occupancy growth year to date, while all other classes are contracting year over year, likely directly related to weaker economic conditions, with consumers who typically stay in Luxury or Upper Upscale hotels more immune to belt-tightening. On a positive note, select- and limited-service hotels also reported occupancy growth for the month.”
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