Canadas hotel industry reported continued lows across the three key performance metrics, according to STRs January 2021 data.
The countrys occupancy level was up slightly from December but was its second-lowest since May 2020. As a result, RevPAR came in lower than any month in Canada since May. Year-over-year declines also remained significant.
- Occupancy: 22.3% (-55.2%)
- Average daily rate (ADR): CAD107.21 (-27.4%)
- Revenue per available room (RevPAR): CAD23.96 (-67.5%)
International travel has been severely depressed since the beginning of the pandemic, and the negative effect on hotel demand has been especially pronounced in Canadas urban markets, said Laura Baxter, CoStar Groups director of hospitality analytics for Canada. CoStar Group is the parent company of STR.
With tighter travel restrictions implemented in Canada, requiring a COVID test and 14-day quarantine for arrivals, we can expect to see a further impact on the countrys hotel performance. Not all markets will be impacted equally, with the mandatory three-day hotel stay upon arrival likely to induce some room demand at government-approved hotels in the largest airport markets Toronto, Vancouver, Montreal and Calgary. However, we are likely to see demand drop at smaller international airports. In the near-term, the negative impact on hotels will only be exacerbated by Canadas suspension of flights to Mexico and the Caribbean until the end of April. Domestic room demand is unlikely to offset much of the loss at this time. If the lockdown measures allow for it, more domestic room demand is expected in the summer months but is hinged upon progress being made toward containment of the virus.
Among the provinces and territories, New Brunswick recorded the lowest occupancy level in January (12.7%), which was down 68.3% in year-over-year comparisons. The province also experienced the lowest RevPAR level (-75.3% to CAD11.48).
Among the major markets, Montreal (13.0%) saw the lowest occupancy level, down 74.9% year over year.
The highest occupancy among provinces was reported in British Columbia (-47.6% to 28.5%). At the market level, the highest occupancy was reported in Vancouver (-57.9% to 26.9%).
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.