Avison Young Unveils Canada Hotel Market Report: Strong Recovery and Optimistic Outlook for 2024

Avison Young has recently published its Canada Hotel Market Report: 2023 Review and 2024 Outlook, highlighting a robust recovery and impressive resilience in major Canadian markets. The report indicates that key performance metrics such as Average Daily Rate (ADR), Revenue Per Available Room (RevPAR), and occupancy have surpassed pre-pandemic levels.

Key findings from the report include:

• Surge in leisure travel and demand from small local groups.
• Significant resurgence in occupancy rates, particularly in the upscale, upper upscale, and luxury hotel segments, with double-digit year-over-year (YOY) growth.
• Montreal experienced the highest YOY growth in occupancy for the second consecutive year, reaching a rate of 70%.
• Vancouver witnessed the highest YOY increase in ADR, recording a growth of 13.8%.
• Montreal, Toronto, and Vancouver tied for the highest YOY increase in RevPAR at 23%.
• Major Canadian markets saw hotel transactions totaling $780 million, marking a 38% increase from 2022 and a 17% increase from pre-pandemic levels, signaling further growth and opportunities in the sector.

While continued growth is anticipated in 2024, the market may transition towards more normalized conditions. Transaction volumes are expected to rise, presenting prospects for increased activity in the hospitality sector.