FALLZ HOTELS™

Your Trusted Source for Intelligent Hospitality Insights

Canada’s Hotel Industry in 2024: A World of Luxury, Adventure, and Sustainable Tourism Awaits

Canada, the second-largest country in the world, is more than just its breathtaking landscapes. In 2024, Canada solidified its place as a top global travel destination, with its hotel industry playing a pivotal role in creating memorable guest experiences. Whether it’s the vibrant energy of cosmopolitan cities or the serene allure of its natural wonders, Canada offered something for everyone. As we look to 2025, Canada’s hotel industry is setting new benchmarks for luxury, sustainability, and cultural tourism.

2024 in Review: A Year of Growth, Diversity, Resilience, and Recovery

Canada’s hospitality sector continued its upward climb in 2024, benefiting from increased international arrivals, thriving domestic travel, and the country’s reputation as a safe, friendly, and eco-conscious destination, AND achieving significant milestones:

Canada’s hospitality industry experienced a stellar year in 2024,

• Revenue Growth: The industry is set to close 2024 with revenue reaching USD 7.08 billion, a sign of growing domestic and international demand.
• Occupancy and ADR Trends: While hotel occupancy rates showed slight fluctuations, averaging around 74%-75% nationally, the average daily rate (ADR) grew steadily, offsetting challenges in specific markets.
• Regional Wins: Cities like Toronto, Vancouver, and Calgary experienced stronger-than-expected performance, thanks to major events, conventions, and rising leisure travel.
• Luxury Market Expansion: High-end hospitality brands saw notable success in urban and remote markets, where demand for personalized, high-value experiences continued to grow.
• Record International Arrivals: Over 25 million international visitors came to Canada in 2024, drawn by its stunning scenery, cultural diversity, and world-class urban centers. Major markets included the United States, China, the UK, Germany, and India.
• Domestic Tourism Thrives: Canadians embraced local travel, exploring destinations from the Rockies to the Maritimes, contributing significantly to regional hotel revenues.
• Luxury Hotels and Resorts Shine: High-end properties like The Fairmont Banff Springs, St. Regis Toronto, and Wickaninnish Inn on Vancouver Island offered unforgettable experiences, including wellness retreats and curated adventure packages.
• Rise of Boutique Hotels: Boutique accommodations emphasizing Canadian art, design, and culture gained popularity in cities like Montreal and Victoria, as well as in remote destinations like Fogo Island.
• Eco-Tourism Expansion: The rise of eco-friendly travel saw destinations such as British Columbia’s Great Bear Rainforest and the Yukon’s vast wilderness attract travelers seeking sustainable and immersive nature experiences.

Key Takeaway: 2024 proved the industry’s resilience, with positive performance indicators across Canada despite global economic uncertainties.

Key Growth Drivers

• Tourism Boom: Canada’s population has grown by approximately 9% between 2019 and 2023, which is expected to drive a rebound in tourism in late 2024 and 2025. Domestic demand constitutes a substantial portion of tourism spending, and new immigrants are anticipated to explore their new homeland, further bolstering the industry.
• Infrastructure Development: The Greater Toronto Area (GTA) has experienced significant infrastructure growth, leading to increased investment in the hospitality sector. Supply growth in the GTA slowed in 2023 to about 2%, with approximately 850 new rooms opening. A similar pace is expected in 2024, with supply well dispersed across Toronto sub-markets.
• Sustainable Tourism: Eco-tourism is gaining momentum, with travelers increasingly drawn to destinations that prioritize sustainability and environmental preservation. This trend is influencing hospitality providers to adopt more sustainable practices to meet evolving consumer preferences.

Key Challenges That Shaped 2024

1. Cost Pressures: Inflation and rising operational costs, particularly in food, utilities, and labor, squeezed margins for hoteliers. While demand was robust, cost management became a central focus.
2. Labor Shortages: Staffing challenges persisted, pushing hotels to adopt automation and flexible employment practices to maintain service standards.
3. Balancing Supply and Demand: While markets like Toronto balanced new supply growth, regions like Winnipeg and smaller urban centers saw uneven demand recovery, requiring careful investment strategies.

Key Regions and Attractions in 2024

Canada’s unparalleled diversity allows for an expansive range of hotel offerings, from sleek urban luxury to rustic lodges surrounded by nature.

1. Urban Sophistication:
Canada’s major cities thrived as hubs of culture, business, and leisure.

• Toronto: As Canada’s largest city, Toronto offered a blend of luxury hotels such as the Ritz-Carlton and boutique properties in hip neighborhoods like Queen West. Its iconic attractions like the CN Tower and the Distillery District paired perfectly with vibrant dining and entertainment.
• Montreal: Known for its European charm, Montreal saw a rise in boutique hotels in Old Montreal, alongside major players like the Four Seasons, which catered to foodies, art enthusiasts, and culture-seekers.
• Vancouver: Nestled between mountains and ocean, Vancouver’s luxury hotels like the Shangri-La provided stunning views, while eco-lodges on the outskirts attracted adventure travelers.

2. Natural Wonders and Adventure Tourism:
Canada’s natural beauty continued to drive demand for accommodations in breathtaking locations.

• Banff and Jasper: Nestled in the Rockies, these world-renowned parks attracted adventure-seekers for hiking, skiing, and wildlife viewing. Luxury lodges like the Fairmont Chateau Lake Louise offered lakeside opulence, while midscale hotels catered to family travelers.
• Atlantic Canada: Destinations like Prince Edward Island and Nova Scotia charmed visitors with boutique inns, coastal views, and farm-to-table culinary experiences.
• The North: The Yukon and Northwest Territories captivated eco-conscious travelers with rustic lodges offering Northern Lights viewing and unique wilderness adventures.

3. Eco-Tourism Hotspots:
Canada’s commitment to sustainability continued to shine in 2024.

• British Columbia: Known for its pioneering sustainability, BC offered eco-luxury stays in the Great Bear Rainforest and the Okanagan Valley’s wine regions.
• The Arctic: Increasingly popular, Arctic lodges offered wildlife enthusiasts the chance to see polar bears and beluga whales in their natural habitats, all while emphasizing conservation.

Key Trends Shaping Canada’s Hospitality Sector

Several major trends have propelled Canada’s hotel industry to new heights in 2024, setting the tone for continued success:

• Luxury and Experiential Travel: Guests increasingly sought curated experiences, from private wilderness tours in Banff to Indigenous cultural immersions in Saskatchewan.
• Eco-Friendly Innovations: Hotels like Fogo Island Inn and Tofino’s Clayoquot Wilderness Lodge led the charge in sustainability, blending luxury with environmental stewardship.
• Cultural and Culinary Tourism: Canada’s diverse cultural heritage attracted visitors to Indigenous-led tourism experiences and culinary hot spots like Quebec City’s restaurants and Vancouver’s Asian food scene.
• Boutique and Lifestyle Hotels: Smaller, design-focused properties in Toronto, Montreal, and coastal towns offered unique, intimate stays blending Canadian character with modern luxury.
• Digital Transformation: Hotels adopted AI-powered guest services, contactless check-ins, and mobile booking platforms to elevate convenience for tech-savvy travelers.

2025 and Beyond: Opportunities and Challenges

As we look toward 2025, Canada’s hospitality industry is set to capitalize on its strengths while addressing challenges to ensure sustainable growth.

• Expansion of Boutique and Regional Hotels: Emerging destinations like the Laurentians, Gaspé Peninsula, and Vancouver Island will benefit from new boutique and eco-friendly hotel developments.
• Tourism Surge: 
  • International tourism: Expected to reach pre-pandemic levels in 2025, driven by Canada’s global appeal as a top travel destination. Key events, such as festivals, sports tournaments, and cultural programs, will attract visitors from around the world.
  • Domestic Travel: Canada’s growing population, fueled by record-breaking immigration, will drive domestic tourism. New Canadians are expected to explore the country more, fueling demand for hotels in both established cities and emerging destinations.
• Sustainable Tourism Leadership: Travelers are increasingly choosing eco-friendly accommodations, pushing hotels to accelerate their sustainability initiatives.Canada’s commitment to green practices, from carbon-neutral hotels to renewable energy initiatives, will position the country as a leader in sustainable travel.
• Green Innovations: Hotels are adopting energy-efficient building designs, waste reduction programs, and carbon-neutral stays.
• Eco-Certifications: More Canadian hotels are likely to pursue certifications like LEED (Leadership in Energy and Environmental Design) to appeal to eco-conscious travelers.
  What This Means: Guests can expect greener stays, with properties offering sustainable amenities, locally sourced food, and environmental conservation initiatives.
• Technology-Driven Experiences: Technology will play a critical role in shaping hospitality services in 2025:
  • Smart Hotels: Digital check-ins, keyless room access, and AI-driven guest personalization will enhance convenience.
  • Automation: Labor challenges will push more hotels to adopt automation for services like housekeeping, reservations, and guest communications.
  • Virtual Concierge Services: Guests will increasingly rely on apps and virtual assistants to customize their stays, from room preferences to booking local experiences.

  Impact for Travelers: Tech-savvy guests will enjoy smoother, more personalized experiences with increased flexibility and control.

• Focus on Indigenous Tourism: Indigenous-led hotels and experiences will grow, offering travelers authentic cultural insights while supporting local communities.
• Adventure Tourism Growth: Destinations like the Rockies, the Yukon, and Newfoundland will see increased demand for nature-based travel, with hotels creating specialized adventure packages.
• Addressing Over-Tourism: Key hotspots such as Banff and Niagara Falls will require innovative solutions to balance visitor numbers with environmental preservation.Focus on the Luxury and Experience Economy

The Canadian luxury hotel market continues to grow, driven by rising demand for exclusive, high-end experiences.

• Remote Luxury: Wilderness lodges, boutique mountain retreats, and lakefront resorts are becoming go-to destinations for travelers seeking premium relaxation in nature.
• Urban Luxury: Cities like Toronto, Montreal, and Vancouver will see further development of luxury accommodations featuring top-tier dining, wellness facilities, and immersive cultural offerings.

Key Insight: High-value experiences tailored to specific traveler preferences—whether wellness, adventure, or gastronomy—will drive growth in the luxury segment.

Regional Highlights for 2025

• Greater Toronto Area (GTA): Supply and demand are expected to remain balanced, supporting continued growth in ADR and RevPAR. Toronto’s robust business travel and convention market will play a key role.
• Vancouver and Calgary: Both cities will benefit from strong leisure and international travel demand, positioning them as key markets for expansion.
• Emerging Markets: Regions like Atlantic Canada and Northern Ontario will attract investment as travelers explore less-traveled destinations.

Conclusion

The Big Picture: A Promising Future

Canada’s hospitality industry has demonstrated remarkable resilience and adaptability in 2024, and all signs point to continued progress in 2025. With rising international tourism, investment in sustainability, and a focus on guest-first technology, Canada is well-positioned to lead the way in global hospitality innovation.

Canada’s hotel industry in 2024 exemplified its ability to blend natural beauty, urban sophistication, and cultural richness to create world-class experiences. Whether it’s relaxing in a luxury lodge in the Rockies, enjoying the multicultural vibrancy of Toronto, or exploring the pristine wilderness of British Columbia, Canada continues to offer something extraordinary for every traveler.

As 2025 approaches, the focus will remain on sustainability, regional development, and delivering unique, personalized experiences. Whether you’re looking for adventure, wellness, or a touch of urban luxury, Canada promises unforgettable memories.

Stay Updated with FALLZ HOTELS™

Your Trusted Source for Intelligent Hospitality Insights

At FALLZ HOTELS™, we’re dedicated to keeping you informed about the latest developments in the dynamic global hospitality industry. As 2025 unfolds, we’ll continue to bring you expert insights, in-depth analyses, and updates on how hotels are evolving to meet the needs of hoteliers, investors, and stakeholders.

FALLZ HOTELS™ will be right here, guiding you every step of the way.