TORONTO — Real estate firm CBRE says Canadian hotels will resume revenue for the pandemic next year, two years ahead of its previous forecast.
The company predicts that the Canadian hotel market will end this year at 92 percent of the revenue per available room it achieved in 2019, before the health crisis kicked in.
It forecasts moderate revenue growth to continue into 2023 as hotel operators push for higher room rates and project revenue per available room will reach $107 next year.
Revenue per available room is a measure of a hotel’s performance, calculated by multiplying the average daily room rate by the occupancy rate.
The $107 rate CBRE foresees will represent a 70 percent increase over the industry’s 2021 performance, which was hampered by health and travel restrictions intended to quell COVID-19 cases.
CBRE also expects half of Canada’s major metropolitan markets to see revenue per available room exceeding $100 by 2023, with Vancouver reaching $182, Montreal $135 and Toronto $129.
“Strong leisure travel and a rapid rebound in the average daily rate in many cities are driving strong hotel performance. Overnight visits from the US continue to recover, along with visits from other key international markets,” said David Ferguson, CBRE hotel director, in a press release.
“However, traveling from some key markets, especially the Asia/Pacific region, is still a challenge. Cities and hotels that serve business travel, meetings and group travel are experiencing a slower recovery.”
This report from The Canadian Press was first published on September 16, 2022.