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STR: Canada experiences highest Q2 hotel occupancy since 1999

July 31, 2018 Hotel Trends No Comments Email Email

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

Compared with Q2 2017:

  • Occupancy: +1.6% to 68.8%
  • Average daily rate (ADR): +4.9% to CAD163.56
  • Revenue per available room (RevPAR): +6.7% to CAD112.52

The absolute occupancy level was the highest for a Q2 in Canada since 1999, while the ADR level was the highest for any Q2 on record. June was the strongest month of the quarter for absolute occupancy (74.8%), ADR (CAD177.90) and RevPAR (CAD133.03).

STR analysts note that a continued influx of inbound international tourism helped achieve a 2.8% increase in Q2 demand (room nights sold). Supply (room nights available) grew 1.2% for the same time period. Performance was also helped by several significant events such as Doors Open Toronto (26-27 May) and the Grand Prix Montreal (8-10 June).

Overall, 11 of the 12 reporting provinces and territories saw RevPAR growth during the quarter.

The Yukon Territory reported the largest increase in RevPAR (+12.2% to CAD126.55), due primarily to the second-largest jump in ADR (+9.1% to CAD157.80).

British Colombia posted the only double-digit lift in ADR (+10.2% to CAD192.22) and the only other double-digit rise in RevPAR (+10.4% to CAD142.14).

Saskatchewan experienced the highest increase in occupancy (+8.1% to 58.2%), but one of only two declines in ADR (-1.3% to CAD119.46).

Newfoundland and Labrador saw the only double-digit drops in occupancy (-17.8% to 55.3%) and RevPAR (-19.6% to US$79.09) and the largest dip in ADR (-2.2% to CAD143.13)

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