STR: Canada Posts Highest Q3 Hotel Rates On Record
Canada’s hotel industry reported mixed year-over-year results in the three key performance metrics during the third quarter of 2018, according to data from STR.
Compared with Q3 2017:
- Occupancy: -0.5% to 78.0%
- Average daily rate (ADR): +4.4% to CAD182.28
- Revenue per available room (RevPAR): +3.9% to CAD142.14
The absolute ADR and RevPAR levels were the highest for any quarter in STR’s Canada database. August was the strongest month of the quarter for absolute occupancy (80.4%), ADR (CAD184.94) and RevPAR (CAD148.75).
- STR: Canada experiences highest Q2 hotel occupancy since 1999
- STR: Canadian hotels register highest Q1 occupancy since 2007
- Central/South America hotel performance for Q1 2018
- STR: U.S. hotel performance for Q3 2018
STR analysts note that a continued influx of inbound international tourism and solid economic conditions helped achieve the record performance levels. Hotels were also helped by several significant events in major markets such as the Canadian National Exhibition (16 August through 3 September) and Vancouver Fashion Week (17-23 September).
Overall, six of the 11 reporting provinces and territories saw RevPAR growth during the quarter.
British Columbia posted the highest jump in RevPAR (+6.7% to CAD191.97), which was driven by the largest lift in ADR (+8.7% to CAD227.22).
Saskatchewan experienced the highest rise in occupancy (+2.8% to 60.4%), but one of the only declines in ADR (-1.8% to CAD115.81).
Ontario registered the second-largest increase in RevPAR (+5.7% to CAD146.22).
Newfoundland and Labrador saw the only double-digit drops in occupancy (-11.8% to 71.8%) and RevPAR (-15.9% to CAD107.31) and the largest dip in ADR (-4.7% to CAD149.49).
New Brunswick reported the second-largest declines in occupancy (-3.1% to 80.1%) and RevPAR (-1.8% to CAD108.19).