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Cushman & Wakefield: INNSIGHTS Q3 2023 Hospitality report released
Cushman & Wakefield has released its INNSIGHTS Q3 2023 hospitality report including Canada hotel performance update, a 2024 growth outlook, and key takeaways from recent hospitality conferences.
Cushman & Wakefield
Summary
In Q3 2023 major markets in Canada continued to report strong year-over-year performance as the recovery continues.
Similar to Q2, many markets posted stronger growth in occupancy this quarter as opposed to ADR, following many months of exceptional ADR growth. Increased levels of contract demand, as well as high inflation and a slowing economy in this quarter have contributed to this trend. Hotel RevPAR performance across Canada grew by 22 per cent in Q3 2023 vs. Q3 2022, driven by demand growth of 10 per cent and ADR growth of 11 per cent. This performance comes on the heels of an already strong summer season in both 2022 and 2023.
Summary
In Q3 2023 major markets in Canada continued to report strong year-over-year performance as the recovery continues.
Similar to Q2, many markets posted stronger growth in occupancy this quarter as opposed to ADR, following many months of exceptional ADR growth. Increased levels of contract demand, as well as high inflation and a slowing economy in this quarter have contributed to this trend. Hotel RevPAR performance across Canada grew by 22 per cent in Q3 2023 vs. Q3 2022, driven by demand growth of 10 per cent and ADR growth of 11 per cent. This performance comes on the heels of an already strong summer season in both 2022 and 2023.
Major cities continue recovery
Canada’s major cities continue to show significant RevPAR growth as 2023 progresses. For many markets Q1 2022 was still impacted by the Omicron variant, and the year-over-year comparison reflects strong growth over this period in 2023. The strongest RevPAR growth in YTD Q3 was seen in Winnipeg at 44%, followed by Toronto at 31 per cent, Montreal at 29 per cent, and Ottawa and Vancouver at 27 per cent. All other markets showed RevPAR growth between 21 per cent and 26 per cent, with the exception of Victoria.
Victoria was one of the strongest performing markets during the pandemic and has already recovered. Canada’s top tourist destinations including Toronto, Ottawa, Montreal, Ottawa, and Vancouver all showed strong RevPAR growth over this period as demand across all segments has continued to grow and as performance was impacted by the summer travel season.
Major cities continue recovery
Canada’s major cities continue to show significant RevPAR growth as 2023 progresses. For many markets Q1 2022 was still impacted by the Omicron variant, and the year-over-year comparison reflects strong growth over this period in 2023. The strongest RevPAR growth in YTD Q3 was seen in Winnipeg at 44%, followed by Toronto at 31 per cent, Montreal at 29 per cent, and Ottawa and Vancouver at 27 per cent. All other markets showed RevPAR growth between 21 per cent and 26 per cent, with the exception of Victoria.
Victoria was one of the strongest performing markets during the pandemic and has already recovered. Canada’s top tourist destinations including Toronto, Ottawa, Montreal, Ottawa, and Vancouver all showed strong RevPAR growth over this period as demand across all segments has continued to grow and as performance was impacted by the summer travel season.
