In the month of June, BC’s hospitality sector experienced impressive growth, with a notable 78.70% occupancy rate, marking a 3.60% increase compared to June 2022. The Average Daily Rate (ADR) also demonstrated a significant uptick at $265.53, up by 10.10% from the same month last year. Moreover, the Revenue Per Available Room (RevPAR) surged to $208.98, showcasing an impressive rise of 14.10% compared to June 2022.
Among the major markets, Vancouver saw the highest occupancy (89.2%), which was 6.8% ahead of June 2022.
These robust indicators underscore the positive trajectory of the hotel industry in BC.
Canada’s hotel industry reported its highest average daily rate (ADR) and revenue per available room (RevPAR) on record, according to CoStar’s June 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
The rest of Canada performed well, too with occupancy of 74.4%, up 3.6%, ADR of $221.86, up 12%, and RevPAR of $164.97, up 16.1%.
“Canada’s hotel industry is benefitting from elevated spending on discretionary services,” says Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“Demand for limited-service hotels continues to trend ahead of 2019 levels, while full service remains below. Against the backdrop of less disposable income, this suggests that some trading down is taking place. The faster recovery of limited-service demand, however, was already in motion during the pandemic, and several of these hotels are being used to various degrees to house asylum seekers, so it’s difficult to isolate the trend fully.
“Group demand was up year over year but remained considerably below pre-pandemic levels, representing the most significant lag in demand. The shortfall was made up for in rate, as group ADR reached a new high, exceeding the $200 mark for the first time on record.”
Among the provinces and territories, Newfoundland and Labrador recorded the highest June occupancy level (86.7%), which was 9.0% above 2022.
The lowest occupancy among provinces was reported in Saskatchewan (62.9%), down 0.3% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+8.1% to 58.0%).
“More Canadians are traveling overseas, placing further importance on international inbound travel to Canada. As of June, leading indicators from Statistics Canada suggest that international inbound continues to lag domestic outbound, presenting a considerable need for hoteliers to attract more international guests.”