AVISON YOUNG

Canada Hotel Market

2021 Review and 2022 Outlook

2021 performance

In 2021 overall, Vancouver experienced the strongest performance metrics among Canada’s six major markets, with a 48% occupancy rate, $156.35 ADR and $77.65 RevPAR. Conversely, Montreal posted the lowest occupancy rate (33%), while Edmonton reported the lowest ADR and RevPAR figures with $103.80 and $37.16, respectively. Compared with 2020’s results, Toronto experienced the largest percentage change in occupancy with 42.1% year-over-year, while Vancouver posted the strongest increases in ADR (16%) and RevPAR (52%). Edmonton and Ottawa were the only cities to experience declines in ADR from 2020 (-3% and -1%, respectively); however, both markets enjoyed a bump in RevPAR, reporting 22% and 20% growth in RevPAR respectively.

RevPAR and occupancy rate by market

Occupancy, ADR and RevPAR by market Change from 2020 to 2021

By hotel class, Upper Midscale hotels experienced the strongest occupancy rate in 2021 (45.8%) while Luxury hotels posted the highest ADR and RevPAR figures at $305.08 and $101.75, respectively. However, Luxury hotels reported the lowest occupancy rate of any class (31.6%), while Economy assets posted the lowest ADR and RevPAR figures with $97.29 and $43.36, respectively. Compared with the 2020 average metrics by hotel class, Upscale experienced the largest increase in occupancy (33.2%), while Luxury reported the biggest leaps in ADR (19%) and RevPAR (38%).

RevPAR and occupancy rate by class

Occupancy, ADR and RevPAR by class Change from 2020 to 2021

Notable Canadian hotel transactions of 2021

*This transaction falls outside the 6 major markets that we track and does not contribute to the sale transactions volumes above.

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Curtis Gallagher* Principal, Canadian Hospitality Lead +1 416.673.4018 curtis.gallagher@avisonyoung.com

Graeme White* Associate +1 647.598.2318 graeme.white@avisonyoung.com

Bobby Singh* Associate +1 905.283.2326 bobby.singh@avisonyoung.com

Haig Basmadjian Senior Associate +1 403.232.4316 haig.basmadjian@avisonyoung.com

*Sales Representative

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© 2022 Avison Young Commercial Real Estate Services, LP, Brokerage. All rights reserved. E. & O.E.: Some of the data in this report has been gathered from third-party sources and has not been independently verified by Avison Young. Avison Young makes no warranties or representations as to the completeness or accuracy thereof. Investment sales and hotel market data sourced from Avison Young, Altus Data Studio and STR.