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Hotel Industry Has Crashed, says HAC Statement

OTTAWA and HENDERSONVILLE, Tenn. – According to data released yesterday by STR, reflecting the broadening concerns around the COVID-19 pandemic, Canadian hotel occupancy dropped 24.3 per cent to 46 per cent during the week March 8 to 14.

In year-over-year comparisons, Average Daily Rate (ADR) dropped 2.8 per cent to $140.70, while Revenue Per Available Room (RevPAR) fell 26.4 per cent to $64.71.

Quebec experienced the largest decline in occupancy (down 29.8 per cent to 44.3 per cent) and the second-steepest drop in RevPAR (a 30.6-per-cent drop to $65.96). Alberta posted the largest drops in ADR (down 6.4 per cent to $127.90) and RevPAR (down 32 per cent to $53.21).

The Hotel Association of Canada released a statement yesterday, painting a dire picture of COVID-19’s effects on the country’s hotel industry.

“Hotel industry business has completely crashed over the past 10 days,” the statement read. “The national occupancy average is below 10 per cent and hotels are closing all over the country. Most of our industry will close its doors before this is over.”

HAC predicts the closures will equate to 200,000 to 250,000 jobs lost, and cites tens of thousands of layoffs already.

“Our primary concern is for our employees and our hotel owners – many of whom are small, family-run operators. They need access to liquidity and flexibility from financial institutions in order to stay afloat.”

Alberta posted the largest drops in ADR (-6.4% to CAD127.90) and RevPAR (-32.0% to CAD53.21).

British Columbia registered the third-largest decrease in RevPAR (-27.6% to CAD83.30).

Newfoundland and Labrador recorded the only increases in occupancy (+2.6% to 44.3%) and RevPAR (+1.8% to CAD53.33).

Saskatchewan saw the highest lift in ADR (+2.7% to CAD122.37).

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