WASHINGTON - Canada’s hotel industry reported its highest occupancy level since August 2019, according to CoStar’s August 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
August 2023 (percentage change from August 2022):
- Occupancy: 77.4% (+1.4%)
- Average daily rate (ADR): CAD226.04 (+5.8%)
- Revenue per available room (RevPAR): CAD174.87 (+7.2%)
Although year-over-year growth has moderated from earlier this year, performance improvement in August was still a considerable achievement against stronger metrics from last summer’s ‘revenge travel’ period.
Demand patterns across the segments are starting to normalize. Both transient and weekend occupancies have been gradually returning closer to 2019 levels over the course of this year. This is not the same for ADR, however, as both segments continue to see rates at an elevated level.
While hoteliers have reported strong demand from tours, sports teams, and smaller groups, demand from large groups has lagged. Group rates, however, are making up for much of the shortfall in demand, and we anticipate booking patterns to normalize moving forward. Laura Baxter, CoStar Group’s director of hospitality analytics for Canada
Among the provinces and territories, Newfoundland and Labrador recorded the highest August occupancy level (88.2%), which was 3.3% above 2022.
Among the major markets, Vancouver saw the highest occupancy (86.4%), which was 0.8% ahead of August 2022.
The lowest occupancy among provinces was reported in Saskatchewan (64.3%), up 4.1% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+10.5% to 66.7%).
“Hotels in Alberta housed wildfire evacuees, creating elevated hotel demand in the market, and strong occupancy growth in Calgary and Edmonton. With a short tourism ban put in place in the Okanagan, hotel performance in Kelowna fell year over year. The ban has been lifted, and hotels are ready to welcome visitors.”
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Additional Performance Data: CoStar’s world-leading hotel performance sample comprises 78,000 properties and 10.3 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract nearly 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. 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.