Date: January 2018
What: The Canadian hotel industry reported positive year-over-year results in the three key performance metrics during 2017, according to data from STR.
Canada’s hotel industry reported occupancy rose 2.4% in 2017 to 65.9%, and when combined with a 5.2% ADR increase to 156.73 Canadian dollars ($127.27), RevPAR jumped 7.7% to CA$103.31 ($83.89) over 2016.
Compared with 2016:
Occupancy: +2.4% to 65.9%
Average daily rate (ADR): +5.2% to CAD156.73
Revenue per available room (RevPAR): +7.7% to CAD103.31
Demand for the year (+3.2%) surpassed projections and pushed the highest absolute occupancy level in Canada since 1999. The ADR growth figure was the best since 2000.
An October report from Destination Canada showed that total international arrivals to the country were up 4.2% year to date. Preliminary figures for November then showed a 9% increase year over year.
STR analysts point to the influx of visitors, as well as celebrations around the 150th anniversary of Confederation, as the main drivers of hotel demand (THPT: and the Trump effect?).
Additionally, supply growth (+0.8%) remained rather muted.
In absolute values, August was Canada’s top month of the year for each of the three metrics: occupancy (80.3%), ADR (CAD177.43) and RevPAR (CAD142.56).
THPT Comment: Good to see Canada is comparing well with it’s big neighbour (USA) on all three metrics. In 2017, the U.S. hotel industry saw occupancy increase 0.9% to 65.9%, and a 2.1% ADR increase to US$126.72 drove RevPAR up 3% to US$83.57 over 2016.
First Seen: Hotel News Now