STR: Canada hotel results for April 2023

In April, Canada’s hotel revenue per available room came in above C$100 for the third consecutive month, according to STR.  

For the month (year-over-year percentage change)

  • Occupancy: 62.7 percent (+9.3 percent)
  • Average daily rate: C$178.80 (+14.8 percent)
  • RevPAR: C$112.16 (+25.5 percent)

“Canada’s hotel room rates continued to be the main driver of top-line recovery,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR.

“In April, inflation was stronger than the Bank of Canada expected, at 4.4 percent. But even when comparing the April results to 2019 dollars, real rates increased 2.3 percent. Growth has been ongoing since July 2022, apart from a slight 1 percent contraction in January 2023. Although transient rates continue to show the strongest lift over 2019, efforts to drive rates in other segments have become increasingly noticeable in the data, for example, group rates were 14 percent above April 2019 levels while weekday rates, a proxy for corporate rates, were up 15 percent.

“Demand has been bolstered by limited-service hotels, which have achieved levels ahead of the 2019 benchmark, while full-service demand has been below that threshold. Strength in limited-service hotels has been ongoing since midway through last year, but the cost of living and belt-tightening will likely add an element of trading down that is amplifying the trend.”

Top Markets

Among the provinces and territories, Manitoba recorded the highest April occupancy level (74.5 percent), which was up 28.5 percent year-over-year.

Among the major markets, Vancouver reported the highest occupancy level (79.8 percent), 5.4 percent above 2022.

Prince Edward Island (40.2 percent) saw the lowest occupancy among provinces, down 5.7 percent year over year. At the market level, the lowest occupancy was reported in Calgary (58.5 percent), which was 1.7 percent above the 2022 comparable.

Edmonton, Winnipeg and Toronto also reported increased demand from hosting the first-round of the NHL hockey playoff games in the latter half of the month.