The Canadian hotel industry reported positive year over year results in the three key performance metrics during 2017, according to data from benchmarking specialist STR, including its highest absolute occupancy level since 1999 and highest growth rate in average daily room rates since 2000.
The strong performance is linked to an increase in international arrivals into Canada during the year and a slow supply growth (up just +0.8%), with STR also highlighting celebrations around the 150th anniversary of Confederation as a further driver of hotel demand.
Performance metrics released by STR last week show 2017 occupancy up +2.4% versus 2016 to 65.9%; average daily rate (ADR) up +5.2% to CAD156.73 and revenue per available room (RevPAR) up +7.7% to CAD103.31. In absolute values, August was Canada’s top month of the year for each of the three metrics: occupancy (80.3%), ADR (CAD177.43) and RevPAR (CAD142.56).
Looking in more detail at the STR data, among the provinces and territories, Manitoba recorded the year’s largest year over year increase in occupancy (+6.9% to 68.7%). The Yukon Territory reported the highest lift in ADR (+8.2% to CAD138.38), resulting in the second-largest increase in RevPAR (+10.8% to CAD107.76). Nova Scotia posted the largest rise in RevPAR (+12.4% to CAD98.98), due primarily to the second-highest increase in ADR (+8.1% to CAD143.52).
On the flip side, Saskatchewan reported the steepest declines in all three key performance metrics: occupancy (-0.5% to 53.3%), ADR (-4.7% to CAD118.88) and RevPAR (-5.2% to CAD63.34). The Northwest Territories experienced the only other decrease in occupancy (-0.4% to 71.6%) and the second-largest declines in ADR (-2.1% to CAD161.91) and RevPAR (-2.5% to CAD115.92).
Official data from Destination Canada for Jan-2017 to Oct-2017, shows overnight arrivals into the country from ten of its eleven international markets increased over the same period in 2016, with the overseas markets gaining 9.0% and arrivals from the US improving by 2.9%. The UK (-3.3%) registered the sole year-to-date decline in arrivals, amid Brexit related concerns.
CHART – Preliminary arrivals data for Nov-2017 shows that visitors arrivals into Canada from Australia, Brazil, China, France, India, Germany, Mexico and South Korea hit monthly highsSource: Destination Canada