STR: CANADA HOTEL OCCUPANCY REACHED THREE-YEAR HIGH IN AUGUST
Canada’s monthly hotel occupancy reached its highest absolute level for any month since August 2019, according to STR’s August 2022 data. |
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STR: CANADA HOTEL OCCUPANCY REACHED THREE-YEAR HIGH IN AUGUST
Canada’s monthly hotel occupancy reached its highest absolute level for any month since August 2019, according to STR’s August 2022 data. |
Category: North America & West Indies / Carribean islands - Canada - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2022-09-30
August 2022 (percentage change from July 2019)
- Occupancy: 76.4% (-3.0%)
- Average daily rate (ADR): CAD212.38 (+14.6%)
- Revenue per available room (RevPAR): CAD162.36 (+11.2%)
Compared with July, each of the three key performance metrics showed weakened comparisons with 2019. When adjusted for inflation, ADR was up 2.7% against the pre-pandemic comparable.
"August is typically the seasonal peak for key performance indicators in Canada," said Laura Baxter, CoStar Group's director of hospitality analytics for Canada. CoStar Group is the parent company of STR.
“This year, however, August performance was on par with July in absolute terms but slightly lower when looking at the recovery index to 2019,” Baxter said.
“No one segment is responsible for this decline, with the pullback taking place across the board, both in transient and group as well as during the weekday and weekend. The weekday rate index, however, bucked the trend and showed a marginal improvement month over month as hoteliers were able to push rates on Monday nights due to strong leisure demand.”
Among the provinces and territories, Prince Edward Island recorded the highest August occupancy level (94.0%), which was 0.2% below the pre-pandemic comparable.
Along the major markets, Vancouver saw the highest occupancy (85.7%), which was a 5.1% decrease from 2019.
The lowest occupancy among provinces was reported in Saskatchewan (62.2%), up 3.0% against 2019. At the market-level, the lowest occupancy was reported in Edmonton (+9.6% to 60.6%).
“Looking ahead, group and corporate demand will play a more prominent role in recovery for reasons beyond the typical seasonal shift away from transient leisure as summer ends,” Baxter said.
“The economic outlook has dimmed while soaring inflation and rising interest rates continue to put downward pressure on discretionary spending from the transient leisure segment. And with more group and corporate and less transient leisure demand in the business mix, ADR growth will decelerate. But it is important to remember that group and corporate ADR have also rebounded considerably with both ahead of the 2019 benchmark. Further recovery in hotel demand from international source markets should take place with the elimination of all COVID-19 entry restrictions on 1 October.”
Additional Performance Data
STR’s world-leading hotel performance sample comprises 75,000 properties and 10 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.
About STR
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. 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.
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