Hotel prices across Canada have surged to record highs, with the average daily rate and revenue per available room reaching historic levels in 2024, according to real estate data firm CoStar.
The national occupancy rate climbed to 65.7%, marking a slight increase of 0.1% from 2023. The average daily hotel rate rose to $208.71, a 4.3% jump, while revenue per available room increased to $137.17, up 4.4% year over year.
According to Laura Baxter, CoStar Group’s director of hospitality analytics for Canada, the strongest revenue growth occurred in the fourth quarter of 2024, driven in part by major events such as Taylor Swift’s concerts in Toronto and Vancouver. However, she noted that overall growth slowed compared to 2023 due to weaker economic conditions and strong comparables from the previous year.
“Room rates once again outpaced inflation, while supply and demand remained flat year over year,” Baxter said. She also highlighted that business travel remained strong, offsetting weaker group demand and stagnant weekend bookings.
- Vancouver led major Canadian cities with an occupancy rate of 78.2%, though it saw a 0.4% decline from 2023.
- Manitoba recorded the highest provincial occupancy rate at 69%, despite a 4.1% drop from the previous year.
- Prince Edward Island had the lowest provincial occupancy rate at 54.7%, a significant 6.9% decline from 2023.
- Edmonton reported the lowest market-level occupancy rate at 58.5%, though it saw a 3.4% increase from the previous year.
With hotel rates continuing to outpace inflation, the hospitality sector remains resilient, particularly in urban centers with strong business travel. However, weaker economic conditions and fluctuations in tourism and group bookings may shape the trajectory of hotel pricing in 2025.