Things are on the upswing for Canadian hotels according to recent data from STR.
Canada’s hotel industry reported higher performance from January 2022 to February 2022, thanks in part to COVID-19 restrictions loosening across the country.
“Canada’s hotel performance improved significantly month over month, as COVID cases fell and gathering restrictions were loosened,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR.
Baxter added: “Recovery is firmly back on track and resumed much quicker after the omicron wave versus previous waves.”
The data also showed strength in room rates on weekends in February, surpassing 2019 levels.
“Weekend occupancy was also relatively strong, exceeding 50 per cent and down only nine percentage points from 2019,” Baxter added. “This strong leisure demand remains a benefit to hotels in small metros/towns and along the highways. In contrast, large upscale and upper-upscale hotels in urban and airport locations continue to lag in recovery due to weak demand from international source markets, along with the lack of corporate and group demand.”
British Columbia recorded the highest February occupancy level (53.3 per cent — just 15 per cent lower than pre-pandemic levels). Prince Edward Island has the lowest occupancy level among the provinces (25.5 per cent compared to 42.2 per cent in 2019).
“Changes that have recently taken place are expected to make a positive difference in the pace of recovery for many of the lagging segments,” Baxter said. “The gradual increase in inbound international travel is likely to accelerate from April onwards, when there will no longer be testing requirements to enter and leave the country. More international travel will benefit major urban centers in particular.”
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