In October, hotel performance in Canada fell. It remained well below pre-pandemic comparisons from October 2019:
- 0 % occupancy (-24.4% )
- ADR : CAD 141.87 (-10.5% )
- RevPAR: CAD 72.37 (-32.3%)
“October hotel performance declined month over month, following the traditional seasonal trend, but there was some bright news in the statistics,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. STR’s parent business is CoStar Group.
“Room rates surpassed 90% of 2019 comparable, which was the closest the statistic has been this year to pre-pandemic levels,” Baxter added. “Hoteliers have continued to implement revenue management tactics to achieve rate increase and have been reactive to the high inflationary environment.”
“Leisure travel continues to outperform corporate demand, with weekends generating $23 more in RevPAR than weekdays.” While group demand has been progressively returning to other nations such as the United States and the United Arab Emirates, it has only recently begun to reemerge in Canada.
Capacity limits on indoor and outdoor meetings have been eased in most regions for fully vaccinated persons, laying the groundwork for group travel recovery. So long as public health conditions do not deteriorate, we anticipate seeing more group business. Although it is too early to identify a trend, group demand has been considerably greater since August, and this will hopefully be the start of rapid group demand growth.