Cushman & Wakefield Unveils 2023/24 Canadian Lodging Insights

Cushman & Wakefield has released its comprehensive 2023/24 Canadian Lodging Industry Overview, providing a thorough analysis of the past year’s performance, notable transactions, and emerging trends within the industry.

In 2023, the Canadian hospitality market achieved a significant milestone by surpassing pre-pandemic occupancy levels, ending the year at 65.7%, compared to 65% in 2019. Additionally, Average Daily Rate (ADR) demonstrated remarkable growth, finishing the year 21% higher than in 2019. This recovery from the impact of COVID-19 occurred in just over three years, showcasing the resilience of the industry despite the pandemic’s widespread repercussions.

Looking ahead, the outlook for growth remains positive, notwithstanding a tempered economic forecast and elevated interest rates. The report indicates a moderation in growth over the past 12 months as markets return to a state of normalization. However, the majority of forecasters anticipate revenue growth in the range of four to five percent for the upcoming year.

Despite the subdued economic outlook for 2024, the investment landscape for hotels remains robust, with notable transactions occurring throughout the previous year, underscoring continued investor confidence in the hospitality sector.