Is 2017 the peak year for Canadian Hospitality?
During Canada’s 150th anniversary, Canadian hotels and resorts had an impressive year with record high occupancy and average daily rates (ADR). However, while 2017 has been the latest in a string of record years, Cushman & Wakefield expects 2018 will reset the level for hotel performance. Our review of key indicators shows continued room-demand and ADR growth in most markets across the country next year.
Despite softness in some energy-based regions in recent years, national revenue per available room (RevPAR) has grown at a compounded rate of 5.25% over the last five years while key markets such as Toronto and Vancouver have seen even stronger growth in the 9.5%-11.0% range. In 2017, many markets shifted to focus on rate growth as they neared functional capacity. We expect this trend to continue in 2018 with the emphasis on rate growth.
The key indicators Cushman & Wakefield considers in our outlook remain positive with continued growth for the next two years.