Canada’s hotel sector experienced a mixed performance in March 2025, with both positive and negative trends emerging from the latest data.
According to a report from CoStar, which provides real estate analytics, key metrics such as occupancy, average daily rate (ADR), and revenue per available room (RevPAR) all showed varied results when compared to the same time last year.
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Despite some challenges, there were notable regional differences across the country.
Occupancy rates and provincial differences
Overall, Canada’s hotel occupancy rate in March 2025 was 59.4%, marking a decline of 2.7% compared to March 2024. However, despite this decrease, the occupancy rate for the month was the highest recorded since November 2024, suggesting a slow but steady recovery for the sector.
Among Canada’s provinces, British Columbia reported the highest occupancy rate at 66.8%, which was an improvement of 1.4% from the previous year. This indicates a resilient performance for the region, particularly in key markets like Vancouver, which recorded a high occupancy of 72.0%.
While this was still a slight drop of 1.7% from 2024, it shows that the region continues to attract a steady number of visitors.
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By GlobalDataMixed performance in eastern Canada
On the other hand, eastern Canada experienced more varied results. Prince Edward Island stood out with an occupancy rate of 38.4%, a significant increase of 17.9% compared to the previous year.
This rise highlights a rebound for the province’s hotel sector, which had faced challenges in past months.
Conversely, Montreal reported the lowest occupancy rate of the major markets, with a decline of 13.9%, bringing the city’s rate down to 55.0%. This marked a significant dip and could indicate that the city is facing unique challenges in attracting visitors this spring.
Changes in revenue per room
The average daily rate (ADR) across Canada rose slightly by 1.6%, reaching CAD 187.81, reflecting moderate price increases for hotel rooms.
However, the increase in rates did not fully translate into higher revenues. Revenue per available room (RevPAR), a key indicator of hotel performance, decreased by 1.2% to CAD 111.52.
This suggests that while some regions were able to raise prices, the drop in occupancy levels may have impacted overall revenue performance.
The performance of Canada’s hotel industry in March 2025 showcases a mixed picture, with some regions showing growth while others continue to face challenges.
The data highlights the importance of monitoring local market conditions, as results can vary significantly between provinces and cities.
