Hotel rates in Canada have reached an all-time high, even as supply and demand remained largely unchanged, according to real estate data firm CoStar.
The company reported that in 2024, the average daily rate and revenue per available room (RevPAR) were the highest ever recorded in the country. The national occupancy level also saw its strongest performance since 2018.
CoStar’s Director of Hospitality Analytics for Canada, Laura Baxter, noted that while hotel revenues surged in the fourth quarter—partly driven by Taylor Swift concerts in Toronto and Vancouver—overall annual growth slowed compared to 2023 due to economic conditions and strong prior-year comparisons.
In 2024, Canada’s hotel occupancy rate stood at 65.7%, rising by 0.1% over the previous year. The average daily rate increased by 4.3% to $208.71, while RevPAR climbed by 4.4% to $137.17.
“Room rates once again outpaced inflation, while supply and demand were flat year over year,” said Baxter, adding that increased business travel helped offset weaker group bookings and weekend stays.
Among major markets, Vancouver led the country with the highest occupancy rate at 78.2%, despite a slight 0.4% decline from 2023. Manitoba had the highest provincial occupancy rate at 69%, although this reflected a 4.1% drop from the previous year.
On the other end of the spectrum, Prince Edward Island recorded the lowest provincial occupancy at 54.7%, declining 6.9%, while Edmonton had the lowest occupancy among major cities at 58.5%, despite posting a 3.4% increase.
Despite economic uncertainty and stagnant supply and demand, Canada’s hotel industry continues to see higher pricing power, driven by strong business travel and premium event-driven tourism.