(Toronto) Canadian hotels will return to pre-pandemic revenue next year, two years earlier than previously expected, according to real estate firm CBRE.
Posted yesterday at 7:00 p.m.
The Canadian hotel market should end 2022 with revenue per available room at around 92% of its 2019 level, before the start of the health crisis, the firm predicted.
Moderate revenue growth will continue through 2023, CBRE continues, with hotel operators pushing for higher rates. Revenue per available room is expected to reach $107 next year, according to its projections.
Revenue per available room is a measure of a hotel’s performance calculated by multiplying its average daily room rate by its occupancy rate.
The $107 rate predicted by CBRE would represent a 70% increase over industry performance in 2021, which was hampered by health and travel restrictions intended to limit COVID-19 cases.
According to CBRE, half of Canada’s major urban markets are expected to see revenue per available room in excess of $100 in 2023. This amount would reach $182 in Vancouver, $135 in Montreal and $129 in Toronto.
“The strength of leisure travel and the rapid rebound in the average daily rate in many cities are leading to strong hotel performance. Overnight visits from the United States continue to recover, along with visits from other key international markets,” CBRE Director of Hotels David Ferguson observed in a press release.