Market Reports

Through Q2 2020 the Canadian lodging industry is experiencing a RevPAR decrease of close to 55%. The luxury segment and hotels with more than 500 rooms have taken the brunt of the Covid-19 impact on lodging demand. The summer leisure domestic demand should prove a short term uptick in Q3.

Canadian hotel occupancy fell 54.6% to 35.4% during the week of 19-25 July as ADR decreased 30.5% to 126.07 Canadian dollars ($93.69) and RevPAR declined 68.4% to CA$44.66 ($33.19).

U.S. hotel occupancy decreased 37.9% to 48.1% during the week of 19-25 July. ADR dipped 27.3% to $99.24 and RevPAR fell 54.8% to $47.75.

US spending into South America is forecast to drop by 44.4% between 2020 and 2021 as travel restrictions due to COVID-19 have stymied visitor flows. Having featured in the top ten international arrivals in all the five major economies across South America in 2019, the reduction of this source of market will be detrimental for the travel sector.

Canadian hotel occupancy fell 71.4% in the second quarter of 2020 to 19.4%, ADR declined 36.4% to 106.66 Canadian dollars ($79.70) and RevPAR decreased 81.8% to CA$20.72 ($15.48).

June hotel occupancy in Central and South America fell 68.9% to 17.3%. ADR decreased 34.6% to $53.77 and RevPAR declined 79.7% to $9.31 for the month.

In June, Europe hotel occupancy fell 72.8% to 21.6%, ADR declined 34.8% to €83.69 ($97.17) and RevPAR dropped 82.3% to €18.11 ($21.03).

Hotels in the Middle East reported occupancy fell 42.9% to 33.6% in June as ADR declined 24.9% to $97.31 and RevPAR dropped 57.1% to $32.72. In Africa, hotel occupancy decreased 76.8% to 13.8%, ADR dipped 27.1% to $74.13 and RevPAR dropped 83.1% to $10.23.

Asia/Pacific hotel occupancy dropped 43% to 38.8% in June as ADR declined 35.2% to $58.86 and RevPAR fell 63.1% to $22.82.

U.S. hotel gross operating profit per available room fell 105.4% in June, but that year-over-year percentage change showed continued improvement from April (-116.9%) and May (-110.1%).