In 2024, the Canadian Hospitality market returned to more regular growth patterns with occupancy growth remaining relatively flat compared to the accelerated growth seen in the 2021-23 period. While RevPAR did grow by 4.4% nationally, it was driven by continued growth in ADR. Occupancy nationally was 65.7%, just 0.1% over 2023 results while ADR grew by 4.3%. National RevPAR now stands at a record high and 28% above the rate achieved in 2019.
The outlook for economic growth was positive going into 2025. However, the recent turmoil caused by a threatened and then deferred trade war with the U.S. could have broad implications for our economy. According to the Bank of Canada, even the threat of tariffs will impact economic growth going forward. How this affects the hospitality market remains to be seen, however, a weakened Canadian dollar and the ongoing threats of tariffs could positively affect the industry. Threats to Canada and other countries could be a boon to domestic and international tourism if travelers reconsider a trip to the U.S. and opt to remain in or visit Canada.
Going into 2025, the majority of forecasters indicated revenue growth in the 2-3% range this year. These forecasts will need to be monitored as the year progresses and as the drama around tariffs plays out.
