What's Happening?
Canada's hotel industry has experienced a significant resurgence, reaching its highest occupancy level since August 2019. According to data from CoStar, the national occupancy rate hit 77.6% in July 2025, marking a 3.0% increase from the previous year. The average daily rate rose to CAD248.50, a 5.3% increase, while revenue per available room climbed by 8.5% to CAD192.75. Manitoba emerged as a standout performer, recording the highest increases across all key performance metrics, with occupancy surging by 14.8% to 80.9%. In contrast, Quebec saw a slight decline in occupancy, dropping by 1.2% to 75.7%. Major events and increased travel demand have contributed to this upward trend.
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Why It's Important?
The strong recovery in Canada's hotel industry highlights the resilience and growth potential of the travel and hospitality sectors. Increased tourism and major events are driving economic benefits, with higher occupancy rates and revenue per available room indicating robust demand. This resurgence is crucial for the industry, which has faced challenges due to global travel restrictions and economic uncertainties. The positive performance in provinces like Manitoba suggests regional variations in recovery, offering insights into market dynamics and opportunities for targeted investment and development.
What's Next?
With major events like the Toronto International Film Festival on the horizon, the hotel industry is poised for continued growth. Cities like Toronto are gearing up for busy periods, with significant boosts in bookings expected. The industry may see further increases in occupancy and revenue as tourism continues to recover. Stakeholders, including hotel operators and local governments, will likely focus on sustaining this momentum by enhancing marketing efforts and improving infrastructure to accommodate growing visitor numbers.
