- Canada’s hotel sector reached its highest-ever annual performance in 2025, with strong gains in occupancy, room rates, and revenue per available room.
- British Columbia and Vancouver stood out as the top performers, while Montreal and parts of Quebec and Ontario saw slight declines.
Canada’s hotel and travel industry experienced a banner year in 2025, posting record-setting results across key performance metrics, according to new data from CoStar, a leading provider of commercial real estate analytics.
Nationwide, hotel occupancy reached 66.1%, a modest 0.7% increase from 2024. The average daily rate (ADR) climbed 3.5% to CAD216.10, while revenue per available room (RevPAR) surged 4.2% to CAD142.89—marking the highest annual figures ever recorded for the country.
British Columbia led the provinces, boasting the highest occupancy (70.4%), ADR (CAD257.03), and RevPAR (CAD180.92). The province’s strong performance highlights its ongoing appeal as a travel destination for both leisure and business travelers.
Among major Canadian cities, Vancouver emerged as the top market, with an impressive 78.4% occupancy rate, an ADR of CAD284.44, and a RevPAR of CAD223.05. However, Vancouver was unique in experiencing a slight dip in room rates, down 0.1% from the previous year.
While most provinces and cities saw gains, Quebec and Ontario reported slight declines in occupancy—down 1.3% and 0.6%, respectively. Montreal faced the most significant challenges, with occupancy dropping 4.5% to 66.6% and RevPAR falling 2.8% to CAD155.87.
Despite these isolated setbacks, the overall outlook for Canada’s hotel and travel industry remains robust, driven by strong demand, rising room rates, and continued interest in key destinations. The record-breaking results signal a vibrant recovery and a growth trajectory for the sector.
