Market Report Canada

Canadian Hotels Post Highest Q3 Hotel Rates on Record

Revenue per available room up 1.8 Percent to CAD141.67
A Maple Leaf - Photo by Kai Oberhäuser on Unsplash
Canadian Hotels Post Highest Q3 Hotel Rates on Record

Canada’s hotel industry reported mixed year-over-year results in the three key performance metrics during the third quarter of 2018, according to data from STR.

Compared with Q3 2017:

• Occupancy: -0.5% to 78.0%
• Average daily rate (ADR): +4.4% to CAD182.28
• Revenue per available room (RevPAR): +3.9% to CAD142.14

The absolute ADR and RevPAR levels were the highest for any quarter in STR’s Canada database. August was the strongest month of the quarter for absolute occupancy (80.4%), ADR (CAD184.94) and RevPAR (CAD148.75).

STR analysts note that a continued influx of inbound international tourism and solid economic conditions helped achieve the record performance levels. Hotels were also helped by several significant events in major markets such as the Canadian National Exhibition (16 August through 3 September) and Vancouver Fashion Week (17-23 September).

Overall, six of the 11 reporting provinces and territories saw RevPAR growth during the quarter.

British Columbia posted the highest jump in RevPAR (+6.7% to CAD191.97), which was driven by the largest lift in ADR (+8.7% to CAD227.22).

Saskatchewan experienced the highest rise in occupancy (+2.8% to 60.4%), but one of the only declines in ADR (-1.8% to CAD115.81).

Ontario registered the second-largest increase in RevPAR (+5.7% to CAD146.22).

Newfoundland and Labrador saw the only double-digit drops in occupancy (-11.8% to 71.8%) and RevPAR (-15.9% to CAD107.31) and the largest dip in ADR (-4.7% to CAD149.49).

New Brunswick reported the second-largest declines in occupancy (-3.1% to 80.1%) and RevPAR (-1.8% to CAD108.19).

STR provides clients from multiple market sectors with premium, global data benchmarking, analytics and marketplace insights. Founded in 1985, STR maintains a presence in 10 countries around the world with a corporate North American headquarters in Hendersonville, Tennessee, and an international headquarters in London, England. For more information, please visit str.com.



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