What's Happening?
Canada's hotel industry experienced its first year-over-year decline in occupancy and revenue per available room (RevPAR) since April, according to November 2025 data from CoStar. The occupancy rate fell to 61.6%, marking a 1.0% decrease from the previous
year, while RevPAR also dropped by 1.0% to CAD120.70. Ontario and major markets such as Toronto and Edmonton were hit hardest, with Toronto seeing a 10.0% decline in average daily rate (ADR) and an 11.6% drop in RevPAR. Edmonton recorded the steepest drop in occupancy among major markets, with a 5.5% decrease to 56.2%. These declines are attributed to the comparison against high demand from events like Taylor Swift's Eras Tour in 2024, highlighting ongoing volatility in the hotel and travel industry as it navigates post-pandemic recovery and fluctuating market conditions.
Why It's Important?
The decline in key performance metrics for Canada's hotel industry signals potential challenges for the broader travel and tourism sector as it continues to recover from the pandemic. The drop in occupancy and revenue could impact economic stakeholders, including hotel operators, employees, and local businesses reliant on tourism. The downturn in major markets like Toronto and Edmonton suggests that even established destinations are vulnerable to shifts in demand and market conditions. This situation underscores the need for strategic planning and adaptation by industry players to mitigate risks and capitalize on emerging opportunities in a volatile environment.
