The imposition of tariffs by the U.S. at the end of Q1 2025 had an immediate impact on the outlook for the Canadian economy. In a matter of weeks, forecasts for economic growth, inflation and unemployment have been adjusted to the downside. We expect room demand will soften and the composition of demand will likely shift. ADR should see growth continue based on increased rate compression through the traditionally busy summer season. Occupancy and rate growth could be more challenged as the impact of tariffs works its way through the economy towards year end.
In addition to an update on the hospitality market, see our key takeaways from the 2025 Canadian Hotel Investment Conference.
InnSights Quarterly Q1 2025 Hospitality Report
5/13/2025
We highlight the key dynamics of the Canadian hospitality sector, along with a glance at the hotel cap rates across Canadian markets.
Related Insights
Perspectives • Investment / Capital Markets
Canadian Cap Rates Perspective Report
Get the latest commercial real estate cap rates in major Canadian markets.
Perspectives
Canadian Lodging Industry Overview
Our annual Lodging Industry Outlook recaps the results for this past year, highlight some of the key transactions, and identify emerging trends.
Brian Flood • 2/25/2025
Perspectives • Valuation
Canadian Student Housing Overview
Our latest report for 2023 outlines how international student growth rebounded over the last two years, the current development pipeline, operating ratios and recent trades.
Brian Flood • 4/10/2023