April 2022 (percentage change from April 2019)
- Occupancy: 57.6% (-7.3%)
- Average daily rate (ADR): CAD155.80 (+2.5%)
- Revenue per available room (RevPAR): CAD89.72 (-5.0%)
“Canada experienced its sixth wave of COVID cases in April, but the lack of restrictions allowed hotel performance recovery to remain strong and steady,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the parent company of STR.
“When looking at weekly performance throughout April, the RevPAR index ranged between 85-98% of 2019 levels, with many lagging segments starting to rebound,” Baxter said. “Weekend demand continued to lead recovery, driven by leisure travelers. Demand, in fact, has been so strong that weekend occupancy reached pre-pandemic levels for the first time during the month. Weekday results still lag, but dramatic improvements are taking place, signaling the return of corporate travel. From Tuesday to Thursday, occupancy was roughly four percentage points ahead of the previous month. In urban locations, this growth accelerated to eight percentage points each of those days. Additionally, monthly group demand reached its highest level of the pandemic -era.
“In addition to an increase in corporate travel, there are more events taking place in major cities, helping some of the most negatively impacted areas. High-profile events such as the World Rugby Sevens in Vancouver and additional sporting events in Toronto helped overall performance in April. Annual favorites such as the Tulip Festival in Ottawa and the upcoming Grand Prix in Montreal are also returning, creating the right environment for urban hotels to thrive.”
Among the provinces and territories, British Columbia recorded the highest April occupancy level (66.5%), which was 2.1% below the pre-pandemic comparable.
Among the major markets, Vancouver saw the highest occupancy (75.5%), which was a 4.8% decline from 2019.
The lowest occupancy among provinces was reported in Prince Edward Island (42.6%), down 24.3% against 2019. At the market level, the lowest occupancy was reported in Ottawa (-18.0% to 54.3%).
“The ADR outlook for 2022 is now much stronger and full recovery is expected in 2023 in nominal terms,” Baxter said. “The possibility of a recession will be a downside risk, but pent-up travel demand due to the lack of restrictions will bolster performance in the short term.”
Tags: STR
