ARLINGTON, Va. – 25 February 2025 – Canada’s hotel industry reported positive performance year over year, driven by growth in room rates, according to January data from CoStar. CoStar is a leading provider of online real estate marketplaces, information and analytics in the property markets.
January 2025 (percentage change from 2024):
- Occupancy: 49.8% (+0.3%)
- Average daily rate (ADR): CAD180.04 (+2.7%)
- Revenue per available room (RevPAR): CAD89.60 (+3.1%)
“Consistent with the recent trend, room rates drove an increase in RevPAR in January,” said Laura Baxter, CoStar Group’s director of hospitality analytics for Canada.
“Group demand showed the most significant lift among segments, benefiting ADR, which grew more than the national average. This trend is expected to continue throughout 2025 as the cadence of conferences, conventions and meetings continues normalizing toward typical demand patterns.”
Among the provinces and territories, British Columbia recorded the highest occupancy level (52.9%), which was 1.3% above 2024.
Among the major markets, Vancouver saw the highest occupancy (60.7%), down 1.1% over January 2024.
The lowest occupancy among provinces was reported in Prince Edward Island (28.5%), down 0.3% against 2024.
At the market level, the lowest occupancy was reported in Calgary (-6.5% to 45.3%).
“CoStar and Tourism Economics’ most recent forecast for 2025 projects RevPAR growth of 2%, with a 1.8% lift in ADR countering mostly flat occupancy,” Baxter said. “Should any proposed tariffs materialize, it could result in a contraction to the economy, and this remains a downside risk to our forecast. In terms of supply, roughly 10,000 rooms are currently in construction across the country, of which 60% are projected to open in 2025. This new supply will make up for limited additions over the past few years when construction delays and hotel conversions to various types of housing put downward pressure on the measure.”
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Additional Performance Data
CoStar’s world-leading hotel performance sample comprises more than 86,000 properties and 11 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
Senior Communications Manager – STR
(216) 278-0627
hluther@str.com
ABOUT COSTAR GROUP, INC.
CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, and online marketplaces. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands include STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 134 million average monthly unique visitors in the fourth quarter of 2024, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website 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 forecasted increase in Average daily rate driving growth in Revenue per available room does not occur, that group demand trends do not continue as expected and that tariffs do not have the expected outcome. 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, except as required by applicable law.