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STR: Canada 2018 hotel performance

January 30, 2019 Hotel Trends No Comments Email Email

The Canadian hotel industry reported positive year-over-year results in the three key performance metrics during 2018, according to data from STR.

Compared with 2017:

  • Occupancy: +1.0% to 66.3%
  • Average daily rate (ADR): +4.3% to CAD163.40
  • Revenue per available room (RevPAR): +5.3% to CAD108.39

The absolute occupancy level was the highest for any year in the country since 1999.

An October report from Destination Canada showed that overnight arrivals of international visitors to the country were up 1.2% year to date, putting the country on track for another record year. Preliminary figures for November then showed a 2% increase year to date. STR analysts point to that influx of visitors as a main driver of healthy hotel demand (+2.0%). Additionally, supply growth (+1.0%) remained modest, further strengthening hotelier pricing power.

In absolute values, August was Canada’s top month of the year for each of the three metrics: occupancy (80.4%), ADR (CAD185.02) and RevPAR (CAD148.74).

Among the provinces and territories, British Columbia recorded the year’s largest year-over-year increase in RevPAR (+9.3% to CAD137.18), due primarily to the largest lift in ADR (+8.6% to CAD193.58).

Saskatchewan experienced the highest rise in occupancy (+6.0% to 56.2%), but the second-steepest drop in ADR (-1.5% to CAD117.71).

Alberta saw the second-largest jump in RevPAR (+6.0% to CAD88.05).

Overall, 10 of the 11 reporting provinces and territories reported RevPAR growth.

Newfoundland and Labrador registered the steepest declines in all three key performance metrics: occupancy (-13.6% to 54.5%), ADR (-4.5% to CAD138.75) and RevPAR (-17.5% to CAD75.66).

Quebec experienced the second-largest drop in occupancy (-2.2% to 69.6%).

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