WASHINGTON – 20 December 2023 – As expected, Canada’s hotel performance fell month over month, but continued a stretch of year-over-year growth, according to CoStar’s November 2023 data. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
November 2023 (percentage change from November 2022):
- Occupancy: 62.1% (+0.5%)
- Average daily rate (ADR): CAD179.18 (+5.8%)
- Revenue per available room (RevPAR): CAD111.19 (+6.4%)
“Canada hotel performance returned to single-digit growth in November,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“This performance is steady given the likely contraction of the wider economy. Room rates drove most of the RevPAR growth, with all segments experiencing an increase, albeit at a slower pace. This result confirms the trend of slowing ADR growth over the last few months, particularly with transient rates, which showed a 4.7% year-over-year lift – the smallest increase since early 2021. Softer room rate growth is expected to continue through mid-2024, with declines expected for a short time before returning to positive territory.
“The marginal occupancy increase outperformed our forecast, which predicted a minor decline. Year-over-year improvements in group occupancy helped keep the metric afloat, and although it’s too early to call this a trend, it is a step in the right direction as occupancy from that segment remains 11% below pre-pandemic levels. Stronger group demand was also evident for full-service, urban and suburban hotels. Occupancy contractions continued for limited-service hotels, however, the segment’s room rate growth remains robust, outperforming the national average by 1.1 percentage points.”
Among the provinces and territories, Manitoba recorded the highest November occupancy level (70.6%), which was 7.5% below 2022.
Among the major markets, Toronto saw the highest occupancy (74.1%), which was 1.0% behind November 2022.
The lowest occupancy among provinces was reported in Prince Edward Island (46.5%), down 22.5% against 2022. At the market level, the lowest occupancy was reported in Edmonton (+4.0% to 55.7%).
“Looking ahead, we expect occupancy to decline each month through the end of Q1 2024,” said Baxter. “Downward pressure on discretionary spending is anticipated, largely due to higher interest rates cycling through to more mortgage holders with renewals on the horizon.”
For more information about the company and its products and services, please visit www.costargroup.com.
Additional Performance Data
CoStar’s world-leading hotel performance sample comprises 80,000 properties and 10.5 million rooms around the globe. Members of the media should refer to the contacts listed below for additional data requests.
News Media Contact
Haley Luther
Communications Manager – STR
(216) 278-0627
hluther@str.com
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. 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 160 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.
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