​​InnSights Quarterly Q2 2025 Hospitality Report​

Operating results for the first six months of 2025 show emerging trends caused by shifts in travel patterns largely resulting from changes in U.S. policies and announcements. The imposition of tariffs has negatively impacted results in several U.S. trade reliant markets, primarily in Southern Ontario. Other markets seeing impacts from trade uncertainty include suburban areas of Toronto and airport markets in Montreal and Toronto. While this is partly due to the decline in government funded Immigration, Refugees and Citizenship Canada (IRCC) demand at airport hotels, Toronto Pearson (YYZ) and Montreal Trudeau (YUL) airports reported nearly flat passenger volumes in H1 (compared to H1 2024). The Montreal airport market has also seen a significant increase in new room supply, which led to a RevPAR decline of 15.1% in the first six months of 2025.

While H1 results show less U.S. travel to Canada, the decline has been more than offset by growth in domestic travel. This is noticeable in strong leisure markets such as Halifax, Quebec City, Banff and Victoria. Niagara Falls has seen year-over-year demand contraction and its performance also shows impact of the reduction in government funded demand; however, weaker U.S. demand has been replaced by increased domestic demand. This shift in travel patterns should bode well for the Canadian hospitality sector in the second half of 2025 and beyond.

Download the full report to learn more.