Canadian hotel occupancy to hit 38%, average daily rate will reach $131 in 2021

Hotel recovery long, slow

Canadian hotels are expected to only recovery slightly from the COVID-19 pandemic this year as travel restrictions linger.

Commercial real estate company Coldwell Banker Richard Ellis says it expects Canadian hotel occupancy to hover around 38 per cent, up from 33 per cent last year and down from 65 per cent in 2019.

Occupancy typically sits between 70 and 80 per cent in Vancouver, Toronto, Halifax/Dartmouth, Montreal and Ottawa, but CBRE believes it will range from 31 to 37 per cent in those cities this year.

CBRE says the average daily rate of a hotel booking will reach $131 this year, up from $129 last year but down from $164 in 2019.

It predicts the most affordable daily rate of cities surveyed will be $101 in Regina and the most expensive will be $155 in Vancouver.

CBRE says the slight increases will be caused by an uptick in demand for domestic and leisure travel, but the industry will remain hampered by border closures, vaccination rates and a lack of in-person meetings and conferences.

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