Sunday, August 25, 2024 Canada’s hotel occupancy fell in July 2024 after three months of growth, while rates increased slightly, as reported by CoStar’s latest data. Following three months of consistent year-over-year growth, the Canadian hotel sector experienced a drop in occupancy rates, as reported by CoStar’s data for July 2024. CoStar is renowned for its comprehensive online real estate platforms and market analytics.
Data from July 2024, showing changes from the previous year: “Occupancy dipped marginally in July after a three-month growth run,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada . “Though most segments grew year over year, group occupancy continued to decline, down 8.5%, which was the steepest drop since March.
A contraction in transient room rates, due to a lower group base combined with shorter booking windows, contributed to slower ADR growth as well. Prince Edward Island achieved the highest occupancy rate among Canada’s provinces and territories at 81.2%, a 1.
2% increase from the previous year. In major urban centers, Vancouver topped the occupancy charts at 85.7%, although this represented a 1.
4% decrease compared to July 2023. Saskatchewan reported the lowest provincial occupancy at 63.4%, which was slightly higher by 0.
2% compared to the previous year. Among major markets, Edmonton recorded the lowest occupancy, which still increased by 3.7%, reaching 61.
0%. “We recently upgraded our 2024 ADR forecast for Canada, which keeps RevPAR comparisons in positive territory as well. Occupancy, however, is projected to decline marginally due to mild weakness in the broader economy.
We expect interest rate cuts to continue through year end and into 2025, which should gradually provide relief to borrowers, setting the stage for improved economic growth and consumer spending by 2025. If that is the case, we currently expect occupancy to return to a 1.2% growth in 2025.
” Additional Performance Insights CoStar’s comprehensive hotel performance database includes 85,000 properties and 11 million rooms worldwide. Media representatives seeking further information should contact the individuals listed below for additional data inquiries..
