According to recent data from STR, in 2022, Canada’s hotel average daily rate (ADR) and revenue per available room (RevPAR) were the highest for any year on record.
The data shows that ADR was up by a whopping 10 per cent, and RevPAR was up by 3.5 per cent.
“Canada’s hotel industry showed exceptional recovery in 2022,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR. “Not only did ADR and RevPAR return to pre-pandemic levels, which was much faster than originally anticipated, but both metrics also reached record highs. The room-rate-led recovery proved to be a winning strategy that resulted in a rebound that was quicker than previous downturns and provided stronger profits for many. The other key driver of recovery was strong transient leisure demand, as households used savings from earlier in the pandemic to supplement travel and hotel spending.”
British Columbia recorded the highest 2022 occupancy level (66.5 per cent), while New Brunswick saw the lowest occupancy level (54.7 per cent) when comparing the provinces and territories.
“Although Canada is expected to enter a moderate recession in 2023, the outlook for the country’s hotel industry remains positive, with more recovery set to take place. Bucking the trend from last year, year-on-year occupancy growth is anticipated to take the leading position, while ADR growth is forecast to pull back but remain in positive territory,” Baxter added.
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