RTO 9 | South Eastern Ontario’s Post

Hotels in major Canadian cities have now fully recovered: BNN Bloomberg report! During the height of the pandemic, travel was among the hardest-hit industries, but a new report suggests the hotel industry is stronger than before. The Canada Hotel Market Report from Avison Young, released Thursday, shows hotels in Canada’s six most populous cities (Toronto, Montreal, Vancouver, Edmonton, Calgary and Ottawa) saw double-digit growth in 2023 and are now stronger in three key metrics compared to 2019. The report found the average daily rate reached $200.10 in 2023, compared to $165.17 in 2019, while revenue per available room climbed by $24.16 and occupancy climbed by 0.7 per cent. The three key figures have climbed every year since 2020. “Overall, the positive year-over-year growth across all performance metrics signals a promising trajectory for the Canadian hospitality industry,” the report states. Overall, the priciest hotels have emerged as the largest benefactors. The report found luxury, upper upscale and upscale hotels have each seen double-digit year-over-year growth in terms of occupancy, while year-over-year growth in revenue per available room eclipsed 20 per cent for upper upscale and upscale hotels. What’s next? The report suggests the hotel resurgence may be short-lived, as economic pressures may have Canadians looking to cut travel costs. “Despite economic pressures and the potential for a recession, hotels have proven adept at navigating difficult times and emerging successful,” the report states. “While growth is anticipated in 2024, it may not be as robust as in the previous year, with the market likely to move towards more normalized conditions.” https://lnkd.in/gCB7MPs9

Metro Vancouver hotel rooms in February were on average more expensive and more filled than those in any other major market in Canada, according to CoStar, a global provider of real estate data, analytics and news, reported BIV News. "Vancouver's metropolitan region saw a 73.5-per-cent hotel-occupancy rate, down from 74.6 per cent in February 2023. That rate was good enough to beat out hotel-occupancy rates that were 66.9 per cent in the Greater Toronto Area (GTA), 62.5 per cent in Ottawa-Gatineau and 57.8 per cent in Montreal." "The average $213.37 price tag for a Metro Vancouver hotel room in February was also the highest among Canada's major markets, CoStar data show. That price compares with $208.48 in Toronto, $192.47 in Ottawa and $187.81 in Montreal." "Vancouver's hotel room prices are rising faster than those in many Canadian cities. Its average February rate was up 6.2 per cent, compared with February 2023. In contrast, the average GTA hotel room price was only up 2.6 per cent. Hotel room rates in Canada's third and fourth priciest metro regions, Ottawa and Montreal, fell year-over-year." https://lnkd.in/gPtgmSCK #vancouver #hotels #roomrates

The rapid increase in visitors to B.C. underscores the need for more hotel development in the city, reported BIV News. "Avison Young today released its Canada Hotel Market Report, which found Vancouver's 2023 average daily room rate for hotels was a Canada-high $266.59, up 13.8 per cent from 2022." "While Metro Vancouver's hotel sector is in its slow season until the end of March, the expectation is that by summer, the province could once again be breaking records for having the most expensive average hotel room prices ever recorded in a major city in Canada." "Back in July 2023, Vancouver hotel rooms charged an average $347.08 daily rate, according to CoStar, a global provider of real estate data, analytics and news. That was the highest figure that CoStar had ever recorded for a major city in Canada. In at least the past two calendar years, the cheapest three months to visit Vancouver were, in order, January, February and March, according to CoStar's data for average hotel room rates. That does not mean rooms in those months are cheap." https://lnkd.in/guD2Gttw #vancouver #hotel #development

Our latest Hotels Tracker shows gross operating profits (GOP) of UK hotels rose to 38.9% in May, an increase from 37.3% in the same period last year and surpassing pre-pandemic GOP of 38.3%. In London, GOP was 43.4% in May, an increase from 42.9% last year and 42.5% in 2019. UK occupancy in May is also up from 76.3% to 79.6% year-on year, slowly creeping towards pre-pandemic levels of 80.1%. Occupancy rates in London continue to increase, rising to 82.9% this year compared to 78.2% last year and 79.2% in 2019. Although average daily rates (ADR) of occupied rooms fell from £154.04 (May 2023) to £153.38 (May 2024) in the UK and from £229.04 to £216.80 in London in the same period, they continue to be significantly higher than pre-pandemic rates of £118.41 (UK) and £174.25 (London). In some good news for hoteliers, the hottest May on record, albeit wet, proved to be a strong month for the UK hotel industry. The hope is that this success continues for the UK hotels market throughout the summer season. Read our insights here: https://lnkd.in/eKyVRx3U #rsminsights #hotels #tourism RSM UK Consumer Markets HQ | Saxon Moseley | Jacqui Baker | Lisa Alty | Hannah McCarthy | Robyn Duffy

Toronto barely nudged out Vancouver as the Canadian city with the highest hotel prices in January, according to CoStar, a global provider of real estate data, analytics and news, reported BIV News. "Visitors to Canada's largest city faced an average daily room rate of $203.70, or $0.43 more than the $203.27 that Vancouver hotels charged guests on average during the month, CoStar's data show. In contrast, Edmonton's average hotel room rate in January was $136.94." "Vancouver's average hotel room rate in January increased more than 5.55 per cent year-over-year, from $192.61 in January 2023, while Toronto's rose more than 4.75 per cent from $194.46 in January 2023, according to the data. The average daily room rate for hotels across the country was $175.38 in January, up about 4.3 per cent year-over-year." https://lnkd.in/dXF-f2yX #canada #hotel #rates #vancouver #toronto

During the Memorial Day holiday, U.S. hotel performance was all about occupancy. From May 24 to June 1, RevPAR rose by 1%, driven entirely by occupancy gains, as ADR remained flat. The top 25 markets saw a 1.6-point increase in occupancy but a slight 0.5% decrease in ADR. Tuesday and Wednesday had the strongest growth. Over the holiday weekend, hotel occupancy held steady at 72.5%. Upper-upscale and luxury hotels led RevPAR gains, despite ADR challenges. Severe storms boosted midweek RevPAR in Dallas and Houston, while Las Vegas and NYC saw notable gains. May is expected to show a 4.2% RevPAR increase.  https://lnkd.in/e4rNpqJE #HARDY #TheHardyGroup #ProjectManagement #HotelPerformance #TravelTrends #OccupancyGains #Data #Analytics #Analysis

Top trends driving US hotel investment in 2024 Supply growth, travel demand and changes to the lending environment will guide hotel performance and investor appetite this year, according to a report from JLL. In the first half of 2024, total U.S. hotel transaction volume stood at $9.2 billion, down roughly 23% year over year, according to commercial real estate company JLL’s H1 2024 U.S. Hotel Investment Trends report, obtained by Hotel Dive. Hotel RevPAR remained “robust” in the half, though, with urban markets in particular showing promise for growth.  Hotel performance and investment in H1 were impacted by several factors, including changes in supply and travel demand, which will continue to guide investor activity as the year goes on.  In the report, JLL analyzed the trends that will shape hotel investment through the balance of the year and beyond, including supply growth, group travel and lender preferences.  Read more at: https://lnkd.in/ebRfXrY8 #hotel #travelindustry #allsuitehotel #extendedstayhotel #hotelmanagement #hoteliers #hotelmanagement

We have been following this Skift trend for the past 9 months. Post pandemic luxury hotel rates and demand have indexed much higher than other categories of hotels. This in spite of a murky economic outlook, supply chain issues, and significant tourism inflation for out of home meals, car rentals and to a lesser extent flights. Could demand for luxury be part of that short term pent up demand for travel ("I can travel again and I'm going to do it well") or a sustained shift to all things luxury?

U.S. hotel investment set to accelerate in 2024, particularly in top urban markets Despite the expectation of prolonged economic uncertainty and geopolitical headwinds in 2024, U.S. hotel performance is forecasted to remain above pre-pandemic levels and provide a favorable backdrop for hotel investors. On the demand side, leisure travel will gradually normalize amidst increased outbound travel options. Conversely, group, business and international travel will continue to reemerge as return-to-office mandates grow and consumers prioritize spending on travel. This will underpin a boost in performance for U.S. urban markets, including New York, Boston, Chicago and San Francisco, among others.   Rates will also remain elevated through 2024; however, there are signs of ADR growth slowing down due to pricing fatigue. Since April 2023, trailing-12-month ADR has consistently grown less than 1%, month-over-month. Nevertheless, the U.S. hotel industry is expected to deliver robust performance in 2024, with year-end RevPAR forecasted to be up 18.1% from 2019. Look for urban markets to lead the way and attract increased investment, with major markets, such as Chicago, Los Angeles and New York City, to drive transaction activity.   Read more at: https://lnkd.in/gxNxmBEp #hotel #travelindustry #allsuitehotel #extendedstayhotel #hotelmanagement #hoteliers #hotelmanagement

UK Hotels Reap the Benefits of the ‘Taylor Swift Effect’! 🎤 June was a record-breaking month for UK hotels, thanks to Taylor Swift’s The Eras tour and rising consumer confidence. Here are the key highlights: Occupancy Rates: Slight increase to 81.9% from 81.4% last year. Average Daily Rates (ADR): Highest on record at £175.91 for June, with London at £256.40. Gross Operating Profits (GOP): Up to 44.5% from 42.8% last year, with London at 50.3%. The hotel sector’s resilience is shining through, and with better (hopefully!) weather and economic improvements on the horizon, we can expect a strong summer ahead, especially with Taylor Swift due to return to the UK in August.