We have written thousands of articles about all aspects of hospitality, including valuations, investing, lending, operations, asset management, and much more.
U.S. hotels began 2026 steadily, with flat occupancy and slightly higher ADR for January. As of February, HVS expects modest RevPAR growth in 2026 and stronger gains in 2027 and 2028. Cap rates are trending downward as more distressed assets sell, while transaction activity is slowly gaining momentum, supported by lower interest rates.
This article reviews the key dynamics shaping Taormina’s hotel market in 2026, from tourism demand and hotel performance to evolving supply patterns, lifestyle positioning and investment activity.
Amidst great global geopolitical and economic uncertainty, Canadians showed their true “Elbows Up” resilience. The national hotel occupancy level cracked the 66% mark with close to 70 million occupied rooms across the country. This is a remarkable achievement, especially given that it was coupled with a 3.5% increase in average daily rates nationally, resulting in a 4.2% RevPAR uptick. The luxury segment saw the greatest lift in RevPAR at 8.7%, more than twice the national average.
Through the third quarter, Canada, had strong RevPAR growth of 4.7%; however large disparities among markets are being witnessed across the country. Northern Alberta is leading with over 23% RevPAR growth year-to-date while Prince Edward Island and Saskatchewan are tied in 2nd and 3rd positions at 12.5% RevPAR growth. Markets facing high US tariffs or absorbing significant new supply in their markets are not faring nearly as well.
Canada's hotel industry is very much holding it's own! In spite of major disruptors on both the economic and geopolitical fronts, through June occupancy has remained stable in comparison to 2024 and ADR has increased by $5, leading to an increase in RevPAR of 2.8%. Domestic demand has greatly contributed to mitigating the current international travel disruptors. Elbows Up Canada!
The Montréal hotel market has made a strong comeback from the pandemic, experiencing a 4.6% rise in room supply, in contrast to the declines in Downtown Toronto and Vancouver. This expansion, combined with a rebound in air travel, extensive hotel renovations, and effective tourism promotion, has positioned Montréal as the most resilient market. With substantial investments and a thriving meetings and events sector, the city’s hotel industry is undergoing a significant evolution.
Canadian Hotel demand continues to outperform 2019 levels in terms of overall occupancy and is even neck and neck with 2018 which was Canada’s occupancy peak. ADR’s robust growth above inflationary rates at 4.3% YTD leads healthy RevPAR growth of 4.0% YTD June. In spite of inflation, deflated RevPARs are higher than pre-COVID levels. We have faced many headwinds with consumer disposable income constraints and geopolitical uncertainty; however, hotel performance continues to roar forward!
As 2023 ends, regional HVS leaders across the globe take a look back at how the global hotel industry fared this year. Overall, operating metrics shined brightly, with revenue growth achieved in most global markets, while investment activity cooled. The investment market is expected to improve in 2024.
Year-to-date 2023 market occupancy Canada wide has surpassed 2019 year-over-year at 67.5% vs. 66.9 % in 2019. Average Daily Rate continues to hold with more than a 20% premium resulting in RevPAR growth over 2019 of almost 22%!
The Canadian hotel industry roared back in 2022! ADR was 10% higher than 2019 in spite of occupancy remaining 6% lower, resulting in a 3.5% RevPAR lift from pre COVID market performance. More good news for hoteliers; when RevPAR growth emanates from ADR, NOI’s are healthier as are hotel values. Fastest bounce back? Hotels less than 75 rooms in tertiary markets in Atlantic Canada. PEI and Newfoundland were the Provincial leaders with pre Covid RevPAR increases of 16.7% and 16.1% respectively.
We have written thousands of articles about all aspects of hospitality, including valuations, investing, lending, operations, asset management, and much more.
U.S. hotels began 2026 steadily, with flat occupancy and slightly higher ADR for January. As of February, HVS expects modest RevPAR growth in 2026 and stronger gains in 2027 and 2028. Cap rates are trending downward as more distressed assets sell, while transaction activity is slowly gaining momentum, supported by lower interest rates.
This article reviews the key dynamics shaping Taormina’s hotel market in 2026, from tourism demand and hotel performance to evolving supply patterns, lifestyle positioning and investment activity.
Amidst great global geopolitical and economic uncertainty, Canadians showed their true “Elbows Up” resilience. The national hotel occupancy level cracked the 66% mark with close to 70 million occupied rooms across the country. This is a remarkable achievement, especially given that it was coupled with a 3.5% increase in average daily rates nationally, resulting in a 4.2% RevPAR uptick. The luxury segment saw the greatest lift in RevPAR at 8.7%, more than twice the national average.
Through the third quarter, Canada, had strong RevPAR growth of 4.7%; however large disparities among markets are being witnessed across the country. Northern Alberta is leading with over 23% RevPAR growth year-to-date while Prince Edward Island and Saskatchewan are tied in 2nd and 3rd positions at 12.5% RevPAR growth. Markets facing high US tariffs or absorbing significant new supply in their markets are not faring nearly as well.
Canada's hotel industry is very much holding it's own! In spite of major disruptors on both the economic and geopolitical fronts, through June occupancy has remained stable in comparison to 2024 and ADR has increased by $5, leading to an increase in RevPAR of 2.8%. Domestic demand has greatly contributed to mitigating the current international travel disruptors. Elbows Up Canada!
The Montréal hotel market has made a strong comeback from the pandemic, experiencing a 4.6% rise in room supply, in contrast to the declines in Downtown Toronto and Vancouver. This expansion, combined with a rebound in air travel, extensive hotel renovations, and effective tourism promotion, has positioned Montréal as the most resilient market. With substantial investments and a thriving meetings and events sector, the city’s hotel industry is undergoing a significant evolution.
Canadian Hotel demand continues to outperform 2019 levels in terms of overall occupancy and is even neck and neck with 2018 which was Canada’s occupancy peak. ADR’s robust growth above inflationary rates at 4.3% YTD leads healthy RevPAR growth of 4.0% YTD June. In spite of inflation, deflated RevPARs are higher than pre-COVID levels. We have faced many headwinds with consumer disposable income constraints and geopolitical uncertainty; however, hotel performance continues to roar forward!
As 2023 ends, regional HVS leaders across the globe take a look back at how the global hotel industry fared this year. Overall, operating metrics shined brightly, with revenue growth achieved in most global markets, while investment activity cooled. The investment market is expected to improve in 2024.
Year-to-date 2023 market occupancy Canada wide has surpassed 2019 year-over-year at 67.5% vs. 66.9 % in 2019. Average Daily Rate continues to hold with more than a 20% premium resulting in RevPAR growth over 2019 of almost 22%!
The Canadian hotel industry roared back in 2022! ADR was 10% higher than 2019 in spite of occupancy remaining 6% lower, resulting in a 3.5% RevPAR lift from pre COVID market performance. More good news for hoteliers; when RevPAR growth emanates from ADR, NOI’s are healthier as are hotel values. Fastest bounce back? Hotels less than 75 rooms in tertiary markets in Atlantic Canada. PEI and Newfoundland were the Provincial leaders with pre Covid RevPAR increases of 16.7% and 16.1% respectively.
Robust demand in urban centers continues to drive Canadian hotel values despite high interest rate environment.
