by Jen Mallia
Last updated: 2:00 PM ET, Thu February 27, 2025
Hotel occupancy and revenue were mostly up in January, compared with the same time in 2024, reports realty analytics firm CoStar.
The data show improved room occupancy in Canadian hotels was 49.8% for the month, a slight (0.3%) raise from January 2024. Revenue per available room (RevPAR) was $89.60 (3.1% higher than last year) and the average daily rate was up 2.7%, to $180.04.
Laura Baxter, CoStar Group’s director of hospitality analytics for Canada stated “Group demand showed the most significant lift among segments, benefiting ADR, which grew more than the national average. This trend is expected to continue throughout 2025 as the cadence of conferences, conventions and meetings continues normalizing toward typical demand patterns.”
When broken down regionally, the numbers show British Columbia hotels with the highest occupancy level (52.9%) and Vancouver hotels at a standout 60.7%, which is down 1.1% from 2024.
On the other end of the spectrum, provincially, Prince Edward Island had the lowest occupancy rates, down 0.3% to 28.5%. For cities, the lowest occupancy rate was recorded in Calgary, which fell 6.5% from January 2024, to 45.3%.
CoStar and Tourism Economics have forecast a 2% RevPar growth for 2025, based on rising ADR rather than increased occupancy. While new hotel rooms are a welcome addition to the landscape, CoStar also cautions the forecast could be tempered by proposed tariffs.
“Should any proposed tariffs materialize, it could result in a contraction to the economy, and this remains a downside risk to our forecast,” says Baxter. “In terms of supply, roughly 10,000 rooms are currently in construction across the country, of which 60% are projected to open in 2025. This new supply will make up for limited additions over the past few years when construction delays and hotel conversions to various types of housing put downward pressure on the measure.”
For more from the world of lodging and accommodation, don't miss TravelPulse Canada's coverage on New Hotel & Resort Openings, Agent Partnerships and More: Top Hotel & Resort News From January.
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