WASHINGTON – July 24, 2023 – Canada’s hotel industry reported its highest average daily rate (ADR) and revenue per available room (RevPAR) on record, according to CoStar’s June 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
June 2023 (percentage change from June 2022):
- Occupancy: 74.4% (+3.6%)
- Average daily rate (ADR): CAD221.86 (+12.0%)
- Revenue per available room (RevPAR): CAD164.97 (+16.1%)
In addition to the monthly ADR and RevPAR levels, Canada’s occupancy level was its highest since August 2022.
“Canada’s hotel industry is benefitting from elevated spending on discretionary services,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“Demand for limited-service hotels continues to trend ahead of 2019 levels, while full service remains below. Against the backdrop of less disposable income, this suggests that some trading down is taking place. The faster recovery of limited-service demand, however, was already in motion during the pandemic, and several of these hotels are being used to various degrees to house asylum seekers, so it’s difficult to isolate the trend fully.
“Group demand was up year over year but remained considerably below pre-pandemic levels, representing the most significant lag in demand. The shortfall was made up for in rate, as group ADR reached a new high, exceeding the $200 mark for the first time on record.”
Among the provinces and territories, Newfoundland and Labrador recorded the highest June occupancy level (86.7%), which was 9.0% above 2022.
Among the major markets, Vancouver saw the highest occupancy (89.2%), which was 6.8% ahead of June 2022.
The lowest occupancy among provinces was reported in Saskatchewan (62.9%), down 0.3% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+8.1% to 58.0%).
“More Canadians are traveling overseas, placing further importance on international inbound travel to Canada. As of June, leading indicators from Statistics Canada suggest that international inbound continues to lag domestic outbound, presenting a considerable need for hoteliers to attract more international guests.”
For more information about the company and its products and services, please visit www.costargroup.com.
Additional Performance Data
CoStar’s world-leading hotel performance sample comprises 78,000 properties and 10.3 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.
News Media Contact
Haley Luther
Communications Manager – STR
(216) 278-0627
hluther@str.com
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract nearly 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
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