Hotels will rebound to pre-pandemic revenue in 2023, two years ahead of forecast: CBRE
TORONTO — Real estate firm CBRE says Canadian hotels will return to pre-pandemic revenue next year, two years ahead of previous forecasts.
The firm predicts that the Canadian hotel market will end this year at 92% of the revenue per available room achieved in 2019, before the start of the health crisis.
He forecasts moderate revenue growth to continue through 2023, with hotel operators pushing for higher rates and revenue per available room projects to hit $107 next year.
Revenue per available room is a measure of a hotel’s performance calculated by multiplying its average daily rate per room by its occupancy rate.
CBRE’s forecast of $107 will represent a 70% increase over industry performance in 2021, which was hampered by health and travel restrictions designed to quell COVID-19 cases.
CBRE also predicts that half of Canada’s major urban markets should see revenue per available room above $100 in 2023, with Vancouver hitting $182, Montreal at $135 and Toronto at $129.
“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’s Director of Hotels David Ferguson said in a press release.
“However, travel from certain key markets, including the Asia/Pacific region, is still difficult. Cities and hotels that offer business travel, meetings and group travel face a slower recovery.
This report from The Canadian Press was first published on September 16, 2022.
The Canadian Press