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Canadian Hotel Occupancy Drops to 14.8 Per Cent

HENDERSONVILLE, Tenn. — The Canadian hotel industry recorded steep year-over-year declines in three key performance metrics during the week of March 22 to 28, 2020, according to data from STR.

In a year-over-year comparison, the industry reported a 76.1-per-cent drop in occupancy to 14.8 per cent, a 25.1-per-cent decrease in Average Daily Rate (ADR) to $109.66 and an 82.1-per-cent decrease in Revenue Per Available Room (RevPAR) to $16.23. This data reflects further declines from the week ending March 21, 2020, which saw occupancy of 21.4 per cent, ADR of $120.82 and RevPAR of $25.84.

Quebec once again saw the steepest decline in occupancy and RevPAR, which fell 85.9 per cent to 8.6 per cent and 88.3 per cent to $10.52, respectively. B.C. recorded the largest decrease in ADR, which fell 31 per cent to $113.86.

Ontario experienced notably steep declines across all three performance metrics:

  • occupancy fell 75.6 per cent to 16.2 per cent
  • ADR dropped 27.5 per cent to $110.72
  • RevPAR decreased by 82.3 per cent to $17.89

Occupancy for all major Canadian markets was below 20 per cent for the week and each saw RevPAR declines of more than 80 per cent. Montreal experienced the most significant decline in both RevPAR and occupancy, which fell 88.5 per cent to $11.47 and 86.1 per cent to 8.9 per cent, respectively. Toronto saw the steepest decline in ADR — a 28-per-cent decrease to $131.07.

Looking at performance by hotel tier, luxury and upper-upscale hotels continued to be the hardest hit. RevPAR for the week fell 94.9 per cent within Canada’s luxury class hotels and 90.9 per cent for the upper-upscale market. Occupancy for these segments was also dismal at 3.7 per cent and 6.8 per cent respectively.

By comparison, midscale hotels — the best performing class in the set — saw RevPAR decline 69 per cent for the week and occupancy of 19.1 per cent.

“We’re in the trough. We’re going to be here for a while,” Jan Freitag, STR’s SVP of Lodging Insights, said in a webinar discussing the week’s results. “But, the beginning is over. The beginning was all of March. We are now at the end of that beginning. This too, shall pass and will get better.”

To highlight this point, Freitag shared charts detailing global travel intent for the next 12 months. While intent has declined, this data indicated that more than 50 per cent of survey respondents (between March 16 and 31) still intend to spend the same amount or more in the next 12 months compared to the previous 12 months.

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