WASHINGTON — Canada’s hotel performance fell month over month, but continued a stretch of year-over-year growth, according to CoStar’s November 2023 data.
In comparison to November 2022, occupancy registered 62.1 per cent (up 0.5 per cent); Average Daily Rate (ADR) came in at $179.18 (up 5.8 per cent); and Revenue Per Available Room (RevPAR) came in at $111.19 (up 6.4 per cent).
Among the provinces and territories, Manitoba recorded the highest November occupancy level (70.6 per cent), which was 7.5-per-cent below 2022. Among the major markets, Toronto saw the highest occupancy (74.1 per cent), which was one-per-cent behind November 2022.
The lowest occupancy among provinces was reported in Prince Edward Island (46.5 per cent), down 22.5 per cent against 2022. At the market level, the lowest occupancy was reported in Edmonton (up four per cent to 55.7 per cent).
“Canada’s hotel performance returned to single-digit growth in November,” says Laura Baxter, CoStar Group’s director of Hospitality Analytics for Canada. “This performance is steady given the likely contraction of the wider economy. Room rates drove most of the RevPAR growth, with all segments experiencing an increase, albeit at a slower pace. This result confirms the trend of slowing ADR growth over the last few months, particularly with transient rates, which showed a 4.7-per-cent year-over-year lift – the smallest increase since early 2021. Softer room-rate growth is expected to continue through mid-2024, with declines expected for a short time before returning to positive territory. Looking ahead, we expect occupancy to decline each month through the end of Q1 2024. Downward pressure on discretionary spending is anticipated, largely due to high interest rates cycling through to more mortgage holders with renewals on the horizon.”
