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Canada hotels record first occupancy decline in three months

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WASHINGTON 22 August 2024 – After three consecutive months of year-over-year increases, Canada’s hotel industry recorded a decline in occupancy, according to CoStar’s July 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets. 

July 2024 (percentage change from 2023):

  • Occupancy: 75.2% (-0.4%)
  • Average daily rate (ADR): CAD236.12 (+1.1%)
  • Revenue per available room (RevPAR): CAD177.62 (+0.7%) 

“Occupancy dipped marginally in July after a three-month growth run,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. 

“Though most segments grew year over year, group occupancy continued to decline, down 8.5%, which was the steepest drop since March. A contraction in transient room rates, due to a lower group base combined with shorter booking windows, contributed to slower ADR growth as well.

Among the provinces and territories, Prince Edward Island recorded the highest occupancy level (81.2%), which was 1.2% above 2023. 

Among the major markets, Vancouver saw the highest occupancy (85.7%), down 1.4% over July 2023. 

The lowest occupancy among provinces was reported in Saskatchewan (63.4%), up 0.2% against 2023. 

At the market level, the lowest occupancy was reported in Edmonton (+3.7% to 61.0%).

“We recently upgraded our 2024 ADR forecast for Canada, which keeps RevPAR comparisons in positive territory as well. Occupancy, however, is projected to decline marginally due to mild weakness in the broader economy. We expect interest rate cuts to continue through year end and into 2025, which should gradually provide relief to borrowers, setting the stage for improved economic growth and consumer spending by 2025. If that is the case, we currently expect occupancy to return to a 1.2% growth in 2025.” 

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 85,000 properties and 11 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
Senior Communications Manager – STR 
(216) 278-0627
hluther@str.com 

ABOUT COSTAR GROUP, INC.
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. OnTheMarket is a leading residential property portal in the United Kingdom. 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 attracted over 183 million monthly average unique visitors in the second quarter of 2024. 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.


This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that macro-economic factors and/or consumer spending do not align with forecasted trends resulting in incorrect expectations for occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2022 and Forms 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
 

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