Market Report Canada

Canadian Hotel Industry Reports 7.7 Percent RevPAR Growth for 2017

Canada's hotel industry reported occupancy rose 2.4% in 2017 to 65.9%, and when combined with a 5.2% ADR increase to 156.73 Canadian dollars ($127.27), RevPAR jumped 7.7% to CA$103.31 ($83.89) over 2016.


The Canadian hotel industry reported positive year-over-year results in the three key performance metrics during 2017, according to data from STR.

Compared with 2016: 

  • Occupancy: +2.4% to 65.9%
  • Average daily rate (ADR): +5.2% to CAD156.73
  • Revenue per available room (RevPAR): +7.7% to CAD103.31

Demand for the year (+3.2%) surpassed projections and pushed the highest absolute occupancy level in Canada since 1999. The ADR growth figure was the best since 2000.

An October report from Destination Canada showed that total international arrivals to the country were up 4.2% year to date. Preliminary figures for November then showed a 9% increase year over year. STR analysts point to the influx of visitors, as well as celebrations around the 150th anniversary of Confederation, as the main drivers of hotel demand. Additionally, supply growth (+0.8%) remained rather muted.

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).

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).

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).

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