March 2025 witnessed a mixed performance in Canada’s hotel industry, with a decrease in occupancy but an increase in the average daily rate. Despite a dip in occupancy, it was the highest since November 2024.
The hotel industry in Canada demonstrated a mixed performance in March 2025, according to data from CoStar, a leading online real estate marketplace, information, and analytics provider.
The occupancy rate exhibited a year-over-year decrease of 2.7%, settling at 59.4%. However, the Average Daily Rate (ADR) experienced a slight increase of 1.6%, reaching CAD 187.81. Revenue per Available Room (RevPAR) also decreased by 1.2%, reaching CAD 111.52.
Highest Occupancy Levels
Despite the overall drop, the recorded occupancy level for March was the highest since November 2024. British Columbia led the provinces and territories with the highest occupancy level of 66.8%, a 1.4% increase compared to March 2024. Among major markets, Vancouver took the top spot with an occupancy rate of 72.0%, although it was down by 1.7% from the previous year.
Lowest Occupancy Levels
On the other end of the spectrum, Prince Edward Island reported the lowest occupancy among provinces, at 38.4%. Despite being the lowest, this figure signifies a substantial increase of 17.9% compared to the previous year. Montreal reported the lowest occupancy at the market level, which decreased by 13.9% to 55.0%.
Mixed Performance, Room for Growth
The mixed performance in March 2025 indicates signs of recovery and growth despite a decrease in some metrics. The Canadian hotel industry will likely continue witnessing fluctuations in the coming months, with potential for further improvement.
