The cities of Quebec, Vancouver and Niagara Falls will continue to outperform other markets in 2022 after benefiting, since last year, from the visit of Canadians traveling to the country due to COVID-19 restrictions, according to a new report. report.
In its document “Outlook for the hotel sector in Canada in 2022,” real estate services firm CBRE noted that all three destinations saw an increase in domestic traveler traffic in 2021.
British Columbia recorded more than 14 million overnight visits by Canadians in 2021, up from 13.5 million in 2019, before the pandemic.
CBRE predicts that Vancouver will outperform other Canadian markets in 2022, with a projected occupancy rate of 55%. Average daily hotel rates are expected to drop to $ 176 and revenue per available room is expected to reach $ 97, up from $ 47 in 2020, but down from $ 175 in 2019.
The occupancy rate in Niagara Falls is expected to be the highest of any Canadian market at 59%, more than double the low last year and a decline of just eight percentage points from 2019. Rates and revenue per available room are expected to improve further next year, but remain lower than before the pandemic.
The occupancy rate in Quebec City should reach 55%, driven by the anticipated resumption of conventions and professional events during the second half of next year.
“These are the resorts that experienced the best rebound in revenue per room available in 2021, much like we saw in 2020,” said CBRE Hotels director Nicole Nguyen.
“Revenue per available room is not yet reaching 2019 levels, but these markets are making giant strides. “
According to CBRE, hotels in urban centers, which were severely shaken during the pandemic, will have a long way to go to return to pre-pandemic numbers.
The firm predicts that Canada’s 13 major hotel markets will have revenue per available room of less than $ 100 in 2022. This should be $ 97 in Vancouver, $ 79 in Montreal and $ 78 in Toronto. The last time Canada saw all of its major markets under $ 100 was in 2010, in the midst of the global financial crisis.
Overall, revenue per available room is expected to increase 53% to $ 72 next year, but the return to pre-pandemic levels is unlikely to happen until 2025, CBRE argued.
A fuller recovery in the industry will depend on the return of American travelers and the resumption of business travel, which is expected to begin next spring.