Canada’s hotel industry report first occupancy increase in 4 months

29.05.2024 - 13:03 / traveldailynews.com / Vicky Karantzavelou

After months of decline, Canada’s hotel industry reported increased occupancy and revenue after four months, with significant growth in average daily rates and RevPAR, according to CoStar data.

WASHINGTON – After four consecutive months of year-over-year declines, Canada’s hotel industry reported an increase in occupancy, according to CoStar’s April 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.

April 2024 for  Canada’s hotel industry (percentage change from 2023):

“The year-over-year growth in occupancy suggests that downward pressure on hotel demand related to weaker economic conditions will not be linear, as the period from December through March suggested,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.

“A calendar shift also influenced results, with some corporate group and transient demand being pushed to April to avoid the Easter break and other holidays. The reverse occurred with Easter in April 2023, so this year’s growth rates are not exactly apples to apples. However, when combining March and April, demand grew 1% year over year.

“Room rate growth accelerated in April, mostly driven by groups which posted an increase of 10.5%. Occupancy in the segment also stood out, up 3.7%, benefitting from weekday group demand.”

Among the provinces and territories, Ontario recorded the highest April 2024 occupancy level (68.1%), which was 4.2% above 2023.

Among the major markets, Vancouver saw the highest occupancy (79.3%), down 0.6% over April 2023.

Prince Edward Island reported the lowest occupancy among provinces at 41.5%, up 2.2% from 2023.

Edmonton reported the lowest occupancy at the market level, increasing by 2.5% to 60.9%.

“When looking at performance by class, luxury hotels reported a 4% lift in occupancy in April,” Baxter said. “Higher-end hotels have posted marginal occupancy growth year to date, while all other classes are contracting year over year, likely directly related to weaker economic conditions, with consumers who typically stay in Luxury or Upper Upscale hotels more immune to belt-tightening. On a positive note, select- and limited-service hotels also reported occupancy growth for the month.”

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.

She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in