Canada’s Hotel Industry Surges Into 2025 with Record-Setting Revenue and Growth
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Canada’s hotel industry has demonstrated a robust performance in the first quarter of 2025, setting new benchmarks and signaling a strong trajectory for the year ahead.
January 2025 Performance:
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Occupancy Rate: 49.8% (+0.3% year-over-year)
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Average Daily Rate (ADR): CAD180.04 (+2.7%)
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Revenue Per Available Room (RevPAR): CAD89.60 (+3.1%)
This growth was primarily driven by an uptick in group demand, reflecting a resurgence in conferences and events.
February 2025 Highlights:
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Occupancy Rate: 57.7% (-0.5% compared to February 2024)
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ADR: CAD189.27 (+4.2%)
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RevPAR: CAD109.14 (+3.7%)
Notably, both ADR and RevPAR reached record highs for February, underscoring the industry’s robust pricing power.
Regional Performance:
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British Columbia: Achieved the highest provincial occupancy at 62.3%.
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Vancouver: Led major markets with a 71.5% occupancy rate.
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Prince Edward Island: Recorded the lowest occupancy among provinces at 36.5%.
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Edmonton: Reported the lowest market-level occupancy at 52.6%.
Future Outlook:
Projections for 2025 are optimistic, with RevPAR expected to grow by 2.7% year-over-year, reaching an unprecedented high of CAD137. This growth is anticipated across all major Canadian markets, bolstered by a resurgence in urban hotel occupancy and increasing demand for luxury accommodations.
Investment and Development:
The industry is poised for significant expansion, with approximately 6,500 new rooms slated to open across Canada this year. This represents a 1.4% increase in national hotel supply, the most substantial growth since 2019. Notable developments include the Element Hotel by Westin in Calgary and the highly anticipated Nobu Hotel in Toronto.
In summary, Canada’s hotel sector is experiencing a period of remarkable growth and resilience. With record-setting ADR and RevPAR figures, strategic regional performances, and a promising development pipeline, the industry is well-positioned for sustained success in 2025 and beyond.
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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.
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