Canada Hotels Recorded Double-Digit RevPAR Growth in October – CoStar Group

3 minutes, 10 seconds Read

Following seasonal patterns, Canada’s hotel performance fell month over month, but continued a stretch of year-over-year growth, according to CoStar’s October 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.

October 2023 (percentage change from October 2022):


Buy/sell, rent/lease residential &
commercials real estate properties.

  • Occupancy: 68.1% (+2.2%)
  • Average daily rate (ADR): CAD196.25 (+8.8%)
  • Revenue per available room (RevPAR): CAD133.57 (+11.2%)

“Following three months of single-digit, year-over-year growth, RevPAR grew double-digits for the first time since June,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.

“Full-service and urban hotels performed particularly well, with weekday occupancy in downtown Vancouver exceeding 2019 levels for the first time since March. There was also growth in group demand compared to the last few months, but despite improvements, the segment remains below average levels. The silver lining is group rates, which are up 26% compared to 2019, were stronger than the transient rate index for the first time.

“Higher occupancy this year has driven revenue across all departments within full-service hotels. But higher occupancy and elevated costs are eroding margins achieved last year when leaner hotel operating models were combined with strong ADR growth. This year, inflated costs are lowering margins, particularly undistributed expenses and higher wages.”

Among the provinces and territories, Nova Scotia recorded the highest October occupancy level (75.0%), which was 6.3% below 2022.

Among the major markets, Vancouver saw the highest occupancy (77.7%), which was 0.1% ahead of October 2022.

The lowest occupancy among provinces was reported in Prince Edward Island (56.0%), down 25.8% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+10.1% to 59.5%).

“Our just-released forecast for 2023 was upgraded once again as rate growth surpassed expectations,” said Baxter. “We have also lifted ADR projections slightly for 2024, at 1.8%, while occupancy growth is forecasted to be more marginal at 0.4%. This is despite a 0.4% GDP contraction expected to occur as people continue to prioritize travel against the backdrop of muted hotel inventory growth.”

For more information about the company and its products and services, please visit www.costargroup.com.

CoStar’s world-leading hotel performance sample comprises 78,000 properties and 10.3 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.

CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attract nearly 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.

Read more news on Hotel News Now.

This post was originally published on this site

Similar Posts

X
0
    0
    Your Interest
    Your Interest List is emptyReturn to Buying
    ×