WASHINGTON - Canada's hotel industry reported a third consecutive month of occupancy declines but continued growth in average daily rate (ADR), according to CoStar's February 2024 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
February 2024 (percentage change from 2023)
Occupancy: 58.0% (-1.6%)
Average daily rate (ADR): CAD181.55 (+3.8%)
Revenue per available room (RevPAR): CAD105.37 (+2.2%)
Group ADR growth (+7.9%) was the strongest among the segments.
Both transient and group occupancy declined, down 2.4% and 1.2%, respectively, contributing to the third consecutive decline in Canada's monthly hotel occupancy, said Laura Baxter, CoStar Group's director of hospitality analytics for Canada.
A greater decline in the metric occurred over the weekends as opposed to weekdays, suggesting that leisure travelers continue to reel in discretionary spending. Meanwhile, weekday occupancy was only marginally below last February, indicating that business travel is not pulling back to the same degree.
Room rate growth, while slightly lower than January, continues to outpace inflation, but the gap between the two measures has narrowed. While group occupancy was down, group rates grew at a healthy pace year over year. The segment is becoming more lucrative and prevalent as group demand continues its recovery to pre-pandemic levels.
Among the provinces and territories, Manitoba recorded the highest February 2024 occupancy level (69.8%), which was 0.5% below 2023.
Among the major markets, Vancouver saw the highest occupancy (73.5%), down 1.4% over February 2023.
The lowest occupancy among provinces was reported in Prince Edward Island (38.6%), down 38.1% against 2023. The decline was due to comparison to the province's Canada Winter Games host period last year.
At the market level, the lowest occupancy was reported in Edmonton (+4.6% to 53.3%).
Supply pressure continues to be minimal for most markets, said Baxter. New openings across Canada in 2024 are expected to be down roughly 30% compared to the 10-year average.
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Additional Performance Data
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About CoStar Group
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with over twelve million monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France's leading commercial real estate news service. Thomas Daily is Germany's largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group's websites attract over 100 million unique monthly visitors. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes 'forward-looking statements' including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that occupancy rates and average daily rates are not as expected. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including in CoStar's Annual Report on Form 10-K for the year ended December 31, 2022 and Forms 10-Q for the quarterly periods ended March 31, 2023, June 30, 2023, and September 30, 2023, each of which is filed with the SEC, including in the 'Risk Factors' section of those filings, as well as CoStar's other filings with the SEC available at the SEC's website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About STR
STR provides premium data benchmarking, analytics and marketplace insights for the global hospitality industry. Founded in 1985, STR maintains a presence in 15 countries with a North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. STR was acquired in October 2019 by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of commercial real estate information, analytics and online marketplaces. For more information, please visit str.com and costargroup.com.
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