STR: Canada hotel RevPAR above $100 for three consecutive months
HENDERSONVILLE, Tennessee - Canada’s hotel revenue per available room (RevPAR) came in above CAD100 for the third consecutive month, according to STR’s April 2023 data.
April 2023 (year-over-year percentage change)
- Occupancy: 62.7% (+9.3%)
- Average daily rate (ADR): CAD178.80 (+14.8%)
- Revenue per available room (RevPAR): CAD112.16 (+25.5%)
Canada’s hotel room rates continued to be the main driver of top-line recovery, said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR.
In April, inflation was stronger than the Bank of Canada expected, at 4.4%. But even when comparing the April results to 2019 dollars, real rates increased 2.3%. Growth has been ongoing since July 2022, apart from a slight 1% contraction in January 2023. Although transient rates continue to show the strongest lift over 2019, efforts to drive rates in other segments have become increasingly noticeable in the data, for example, group rates were 14% above April 2019 levels while weekday rates, a proxy for corporate rates, were up 15%.
Demand has been bolstered by limited-service hotels, which have achieved levels ahead of the 2019 benchmark, while full-service demand has been below that threshold. Strength in limited-service hotels has been ongoing since midway through last year, but the cost of living and belt-tightening will likely add an element of trading down that is amplifying the trend.
Among the provinces and territories, Manitoba recorded the highest April occupancy level (74.5%), which was up 28.5% year over year.
Among the major markets, Vancouver reported the highest occupancy level (79.8%), which was 5.4% above 2022.
Prince Edward Island (40.2%) saw the lowest occupancy among provinces, down 5.7% year over year. At the market level, the lowest occupancy was reported in Calgary (58.5%), which was 1.7% above the 2022 comparable.
Edmonton, Winnipeg, and Toronto also enjoyed added demand from hosting the first-round of the NHL hockey playoff games in the latter half of the month.
Additional Performance Data
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STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information and analytics in the commercial and residential property markets. For more information, please visit str.com and costargroup.com.
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