Record-Breaking ADR and RevPAR for Canada’s Hotel Industry in 2024 :: Hospitality Trends

• Canada’s average daily rate (ADR) and revenue per available room (RevPAR) hit an all-time high in 2024. – Despite economic challenges, the growth in business travel signaled a strong performance in the hotel industry.
• Data from CoStar, a top online property market analytics provider, reports that Canada’s hotel industry witnessed a record-breaking year with the highest-ever average daily rate (ADR) and revenue per available room (RevPAR).

The 2024 statistics showed a minor increase of 0.1% in occupancy to 65.7%, while the ADR rose by 4.3% to CAD208.71. The RevPAR also saw an increase of 4.4%, reaching CAD137.17. Interestingly, this is the highest occupancy level Canada has experienced since 2018.

Despite these record numbers, the country’s overall annual growth rate witnessed a slight dip compared to 2023. This is attributed to weaker economic conditions and challenging comparisons against the previous year’s strong performance. However, room rates continued to outpace inflation, and a steady supply-demand scenario was observed throughout the year.

Transient demand and weekday results increased, indicating persistent strength in business travel. This counterbalanced the weaker group demand and flat weekend performance.

Manitoba had the highest occupancy level among the provinces at 69.0%, albeit 4.1% lower than 2023. Vancouver led the major markets with the highest occupancy of 78.2%, a slight decrease of 0.4% compared to 2023. The lowest occupancy rate was recorded in Prince Edward Island (54.7%) and Edmonton (58.5%), down by 6.9% and up by 3.4% respectively against 2023.