Canada’s resort business reported its highest efficiency since September 2022, in line with STR‘s Could 2023 information.
Could 2023 (year-over-year share change)
- Occupancy: 69.2% (+9.3%)
- Common day by day charge (ADR): CAD197.10 (+15.0%)
- Income per accessible room (RevPAR): CAD136.32 (+25.7%)
“Canada’s resort room demand exceeded the pre-pandemic comparable for the seventh consecutive month,” mentioned Laura Baxter, CoStar Group’s director of hospitality analytics for Canada. CoStar Group is the guardian firm of STR. “To place the nation’s 3% demand progress from 2019 into perspective, the metric was up simply 1% within the U.Okay. and down 2% within the U.S. With such strong demand, room charges approached almost $200, up 18% over 2019. The expansion charge in comparison with 2019 has been comparable during the last three months, suggesting that the speed index might have plateaued. Main city areas are nonetheless benefitting from rebounding demand and ADR progress, and in some instances, constrained provide. There may be additionally no signal of weak spot within the transient leisure section at a nationwide degree, because the demand index hit a post-pandemic excessive at 113, whereas weekend occupancy, which can be utilized as a proxy for leisure demand, was additionally forward of final month at 106.
“Could weekday occupancy is an effective litmus take a look at of company resort demand, as it’s a standard month for company journey in Canada with only a few non secular holidays and just one statutory vacation. The section carried out effectively with the metric rising to 100% of 2019 ranges, or up 11.9% yr over yr. The weekday charge index additionally remained elevated, up 15%.”
Among the many provinces and territories, Newfoundland and Labrador recorded the best Could occupancy degree (79.9%), which was up 46.0% yr over yr.
Among the many main markets, Vancouver reported the best occupancy degree (83.0%), which was 8.5% above Could 2022.
Prince Edward Island (+15.1% to 59.1%) and New Brunswick (+7.9% to 59.1%) matched for the bottom occupancy amongst provinces. On the market degree, the bottom occupancy was reported in Edmonton (60.9%), which was 10.2% above the 2022 comparable.
“STR and Tourism Economics launched an up to date forecast in June and the brand new model stays much like the final, projecting full-year occupancy to return to 2019 ranges this yr,” mentioned Baxter. “What has modified is that inflation-adjusted ADR and RevPAR are additionally anticipated to achieve pre-pandemic ranges in 2023, which is sooner than anticipated within the earlier model.”.