- Despite potential economic challenges due to a threatened U.S. trade war, the Canadian hotel industry experienced growth in 2024, with the national RevPAR (Revenue Per Available Room) reaching a record high.
- Forecasters predict continued revenue growth for the industry in 2025, though the ongoing tariff situation may impact this.
The Canadian hospitality industry saw steady growth in 2024, with RevPAR increasing by 4.4% nationally, driven by a rise in ADR (Average Daily Rate). This marked a return to regular growth patterns, following the accelerated growth from 2021-23. The national occupancy rate was 65.7%, a marginal increase from 2023 results, while ADR grew by 4.3%. The national RevPAR now stands at a record high, 28% above the rate achieved in 2019.
Despite the positive economic outlook for 2025, potential challenges lurk. Tensions around a threatened but later deferred trade war with the U.S. may have broad implications for the Canadian economy. The Bank of Canada has warned that even the threat of tariffs could impact economic growth.
However, the hospitality market is not doomed. The weakened Canadian dollar and threats of tariffs might indirectly benefit the industry. The upheavals could potentially encourage domestic and international tourists to reconsider plans to visit the U.S. and instead opt to stay in or visit Canada.
As we move into 2025, most forecasters estimate a revenue growth in the year’s 2-3% range. However, these forecasts will need close monitoring as the year unfolds and the tariff situation continues to evolve.
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