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In Canada Year-To-Date April Is Not Bad…

CANADIAN LODGING OUTLOOK
April 2007


The Canadian Lodging Outlook is a joint monthly publication 
of Smith Travel Research and HVS International, 
Vancouver and Toronto, Canada
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By: Betsy MacDonald, MAI, AACI, RIBC - HVS

Year-to-date through April, RevPAR growth across Canada was 6.4%, which was largely driven by a 5.8% increase in average room rate. The highest RevPAR in the country was actually the province of British Columbia area, which reported a RevPAR at $116.66. This RevPAR is somewhat misleading because it includes Whistler during its prime season. In comparing the major urban areas in the STR survey, downtown Toronto had the highest RevPAR at $98.70 for the first four months of 2007 in comparison to $90.91 for the same period in 2006. This represents an increase in RevPAR of 8.6%, with growth in both occupancy and average room rate.

Not surprisingly, the Alberta North Area had the second highest RevPAR at $93.21 as compared to $86.29 during the same period in 2006. This represents an increase of 8.0%. This increase was completely driven by the average room rate, which was up 16.0%. Occupancy actually declined by 5 points. Room night demand was down 5.7%. This is fairly consistent with what operators report, occupancy is down, but they are still pushing average rates.
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Calgary came in third with a RevPAR of $90.86 as compared to $80.85 year to date April 2006. This was an increase of 12.4%, driven by both occupancy and average room rate. Demand was up 5.9%, average room rate was up 10.0%, and supply increased 3.7%.

Vancouver was ever so slightly below Calgary with a year-to-date RevPAR of $89.77 as compared to $82.40 in 2006.  RevPAR growth was up 8.9%. Although actual occupancy was up slightly, room night demand declined. This is due to the closing of the Crowne Plaza Hotel Georgia at the beginning of this year.

Ottawa came in fifth with a RevPAR of $84.48, up 6.3% over $79.49 in 2006.  Sixth was Edmonton with a RevPAR of $83.28, up 13.6% over $73.31 in 2006.  Seventh was Toronto Airport/West with a RevPAR of $79.57, up 2.9% over $77.32 in 2006.

Downtown Montreal’s RevPAR at $73.12 was down slightly from 2006. Downtown Montreal had a slight increase in occupancy, but the average room rate declined. It appears that, group/convention bookings are noticeably light in 2007 however, we were surprised that downtown Montreal’s RevPAR was $25 lower than downtown Toronto, and $16 lower than downtown Vancouver.


CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
April  2007

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CANADIAN LODGING OUTLOOK
HVS INTERNATIONAL - CANADA
April  2007 YTD

© Smith Travel Research, 2005. Reproduction or quotation in whole or in part without permission is forbidden. *INS - Insufficient Data
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Contact:

Selina Lai
HVS International - Canada
6 Victoria Street
Toronto, ON, M5E 1L4
Canada
Tel:  +1 416 686-2260 ext. 21
Fax:  +1 416 686-2264
Email:  slai@hvs.com
http://www.hvs.com

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Also See: The Financial Impact of Hotel Spas / Elaine Sahlins and Amy Peterson / HVS Canadian Lodging Outlook / March 2007 Results / May 2007
Some Long-term Trends that Might be Adverse to the Future of the Hotel Industry / Steve Rushmore / Canadian Lodging Outlook - April 2006 Year-to-Date
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