STR: Canadian hotels register highest Q1 occupancy since 2007
Canada's hotel industry reported positive year-over-year results in the three key performance metrics during the first quarter of 2018, according to data from STR.
Compared with Q1 2017:
- Occupancy: +2.2% to 57.3%
- Average daily rate (ADR): +5.0% to CAD147.14
- Revenue per available room (RevPAR): +7.3% to CAD84.25
The absolute occupancy level was the highest for a Q1 in Canada since 2007, while the ADR and RevPAR levels were the highest for any Q1 on record. March was the strongest month of the quarter, in absolute terms, for occupancy (61.9%), ADR (CAD148.90) and RevPAR (CAD92.18).
STR analysts note that a 3.1% increase in Q1 demand (room nights sold) can be attributed to a jump in inbound tourism, which could be due to the openness of the country's borders and the weak Canadian dollar compared with the U.S. dollar. Occupancy growth then initiated a shift in pricing power. All of the country's Q1 performance metrics exceeded STR's Forecast for Q1, with the exception of supply, which grew 0.9%.
Overall, 10 of the 11 reporting provinces and territories saw RevPAR growth during the quarter.
British Colombia posted the largest increases in ADR (+9.7% to CAD172.88) and RevPAR (+12.9% to CAD108.20).
Ontario reported the only other double-digit jump in RevPAR (+10.0% to CAD89.49), due in part to the second-largest increase in ADR (+5.9% to CAD147.92).
Saskatchewan experienced the highest rise in occupancy (+5.8% to 50.5%) but the largest ADR decrease for the quarter (-3.2% to CAD116.65).
Newfoundland and Labrador saw the only double-digit drop in occupancy (-14.7% to 43.4%) and the only decline in RevPAR (-16.0% to CAD56.46). A note to editors: All references to STR data and analysis should cite "STR" as the source. Please refrain from citing "STR, Inc." "Smith Travel Research" or "STR Global" in sourcing as those names no longer fit within the STR brand.
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