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Canadian Accommodation Outlook - Q2 2019

Brian Flood • 8/19/2019

Through the first half of 2019, accommodation performance growth across the country has softened compared to previous years.

2019 Q2 Canadian Accommodation Outlook

Following a number of years of strong growth, mostly in ADR improvements, accommodation performance appears to be impacted by softening demand growth and further increases in supply.

As of the end of Q2 2019, supply increased by 1.5% while demand increased by 1.0%. This resulted in year-to-date (YTD) occupancy dipping slightly to 62.5% from 62.8% in the same period last year. ADR continued to show growth, albeit at a slower pace at only 2.0% (compared to 4.3% in 2018). As a result, overall RevPAR growth was only 1.5% in YTD Q2 2019 (5.3% in 2018).

Canadian HIstorical Operating Statistics - 2009-2018

RevPAR growth across all 10 major markets has continued to soften through the first two quarters of 2019, following exceptional growth in 2018.

Vancouver and Montreal are the only two major markets to see RevPAR growth above 1% by Q2 2019, at 7.8% and 6.0%, respectively.

Ottawa and Toronto have managed to show some RevPAR growth, albeit both below 1%, while the remainder of the major markets have seen a RevPAR decline.

Edmonton and Calgary have seen the highest RevPAR declines YTD, as a result of weaker performance in both occupancy and ADR.

Top 10 Canadian Markets RevPAR Percent Change - YTD June 2019

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