Through Q2 2020 the Canadian lodging industry is experiencing a RevPAR decrease of close to 55%. The luxury segment and hotels with more than 500 rooms have taken the brunt of the Covid-19 impact on lodging demand. The summer leisure domestic demand should prove a short term uptick in Q3.
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Unprecedented declines in Covid-19 RevPARs in March in every major market throughout Canada, is expected to continue through next quarter as well.
RevPar growth across Canada is flat through the third quarter of 2019. On a provincial level, BC leads the pack with over 3.0% growth with Quebec on its heels at 2.5%. Newfoundland struggles to absorb new supply with a near 6.0% decline and Manitoba's softer market leads to a 3.0% decrease.
The hotel industry in Canada continues through midyear with solid demand and ADR growth. PEI leads the provinces in demand growth and British Columbia continues to trump ADR growth.
Absorption of new inventory of rooms across the country is putting downward pressure on national occupancy; average rate continues to grow, albeit at a slower pace.
The Canadian hotel industry blew it out of the park once again in 2018! Growth in demand outpaced growth in new supply 2:1, leading to never before seen levels of national occupancy and average rate.
On average, hotel prices increased significantly in 2018, as a strong pool of buyers with favorable outlooks kept downward pressure on cap rates.
Canada's consistently strong hotel demand growth through Q3 continues to outpace new supply growth by a ratio of 2 to 1!
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