Canada hotel occupancy declined 1.3% to 65.2% in 2019, and ADR increased 1.2% to result in nearly flat RevPAR (-0.2%).
HENDERSONVILLE, Tennessee—The Canadian hotel industry reported mostly negative year-over-year results in the three key performance metrics during 2019, according to data from STR.
Compared with 2018:
• Occupancy: -1.3% to 65.2%
• Average daily rate (ADR): +1.2% to CAD165.23
• Revenue per available room (RevPAR): -0.2% to CAD107.81
The absolute ADR level was the highest for any year in STR’s Canada database, while the absolute RevPAR level was the second-highest on record behind 2018 (CAD108.00).
An October report from Destination Canada showed that overnight arrivals of international visitors to the country surpassed 1.6 million for the first time ever for that month, bringing year-to-date visitors to a record high of 19.6 million (+5.0%). STR analysts note that despite that exponential growth, hotel demand (+0.1%) lagged behind supply (+1.5%), which brought occupancy down. With occupancy levels declining and economic growth slowing, hoteliers experienced less pricing power compared with 2018.
In absolute values, August was Canada’s top month of the year for each of the three metrics: occupancy (79.0%), ADR (CAD185.08) and RevPAR (CAD146.21).
Among the provinces and territories, British Columbia recorded the largest year-over-year increase in RevPAR (+2.6% to CAD138.50), due primarily to the largest lift in ADR (+2.6% to CAD197.40).
Newfoundland and Labrador experienced the highest rise in occupancy (+1.7% to 54.5%) but the steepest declines in ADR (-5.5% to CAD132.22) and RevPAR (-4.0% to CAD72.12).
Nova Scotia registered the only other increase in occupancy (+0.7% to 67.9%) but the second-largest decrease in ADR (-2.0% to CAD146.50).
Alberta saw the largest drop in occupancy (-2.5% to 55.6%), which resulted in the second-steepest decline in RevPAR (-2.6% to CAD85.43).
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STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
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