2022 was a pivotal year for the Canadian Hospitality industry. While the sector is still in recovery mode, most markets across the country achieved stronger top line results than 2019, resulting in profit levels not seen in the last three years. In our 2022 Outlook, we had anticipated the beginnings of a recovery once vaccines had been distributed. This came to fruition in Q2, with growth in demand and a surge in ADR across most markets, driven by the leisure segment. Demand has still not fully recovered in certain segments such as Group and Corporate, but the outlook remains positive as these segments continue to recover.
In the face of these positive developments, the sector is not immune to the larger economy and inflation is impacting operating costs in terms of supplies and labour. Labour shortages are also an issue for the industry coming out of COVID-19 as many senior staff chose to retire and younger staff were attracted to other industries through the pandemic.
Despite higher interest rates, investors remain fully engaged in the sector, The largest challenge for investors is the lack of opportunities to acquire. This annual Outlook recaps the results for this past year, the outlook for 2023, and emerging industry trends.