While a staggering $28.4 billion flowed into Canadian hotels in 2023, the real story lies beneath these headline numbers, revealing a sector not just recovering but strategically evolving to meet new traveler demands.
Key Takeaways
- In 2023, the Canadian hotel industry generated total revenue of $28.4 billion, reflecting a 15.2% year-over-year growth driven by domestic leisure travel recovery.
- Hotel room revenue in Ontario alone accounted for 42.7% of national totals in Q4 2023, totaling $3.2 billion.
- Average daily rate (ADR) for luxury hotels in Toronto rose to CAD 456.30 in 2023, up 18.4% from 2022.
- National hotel occupancy rate averaged 68.4% in 2023, recovering to 92% of 2019 levels.
- Toronto hotels achieved 74.2% occupancy in Q4 2023, driven by business travel rebound.
- Vancouver luxury segment occupancy hit 79.5% in summer 2023, up 11.3% YoY.
- The Canadian hotel industry employed 310,200 full-time equivalent workers in 2023.
- Ontario hotel workforce totaled 128,500 jobs in 2023, 41.4% of national total.
- Front desk and concierge roles saw 12.3% hiring increase to 45,000 positions in 2023.
- The total number of hotel rooms in Canada stood at 1,248,300 in 2023.
- New hotel room openings totaled 12,500 units across Canada in 2023.
- Ontario added 4,200 luxury rooms in Toronto and GTA in 2023.
- 62% of Canadians booked hotels via mobile apps in 2023 surveys.
- Sustainable hotel certifications rose to 1,850 properties or 28% in 2023.
- 47.3% of travelers prioritized eco-friendly hotels in 2023.
The Canadian hotel industry thrived in 2023 with strong revenue and job growth.
Consumer Trends and Sustainability
- 62% of Canadians booked hotels via mobile apps in 2023 surveys.
- Sustainable hotel certifications rose to 1,850 properties or 28% in 2023.
- 47.3% of travelers prioritized eco-friendly hotels in 2023.
- Domestic trips accounted for 78.6% of hotel bookings in 2023.
- Average length of stay in Canadian hotels was 2.14 nights in 2023.
- Business travel bookings recovered to 68% of 2019 levels in 2023.
- 35.2% growth in family/group bookings for hotels in 2023.
- Contactless check-in adopted by 92% of major chain hotels in 2023.
- Millennials represented 41% of hotel guests in urban Canada 2023.
- EV charging stations in hotels increased to 4,200 locations in 2023.
- 56.4% of bookings made 30 days or less in advance in 2023.
- Pet-friendly rooms grew 22% to 45,000 units nationwide in 2023.
- Wellness tourism drove 29% of bookings, up from 18% in 2022.
- Loyalty program redemptions hit 18.5 million stays in Canadian hotels 2023.
- Solo female travelers increased to 24.7% of bookings in 2023.
- Foodie experiences influenced 63% of hotel destination choices in 2023.
- 71% of Gen Z preferred hotels with social media integration in 2023.
- Adventure tourism bookings up 34% for resort hotels in 2023.
- Zero-waste initiatives in 1,200 hotels reduced landfill by 45% in 2023.
- Voice-activated room controls in 650 smart hotels used by 52% guests.
Consumer Trends and Sustainability Interpretation
The Canadian hotel scene in 2023 was defined by a mobile-savvy, eco-conscious guest booking short, food-driven domestic getaways on their phones, while hotels raced to keep up with demands for pet-friendly rooms, EV chargers, and contactless convenience.
Employment Statistics
- The Canadian hotel industry employed 310,200 full-time equivalent workers in 2023.
- Ontario hotel workforce totaled 128,500 jobs in 2023, 41.4% of national total.
- Front desk and concierge roles saw 12.3% hiring increase to 45,000 positions in 2023.
- Housekeeping staff in Canadian hotels numbered 85,400 in 2023, up 8.9% YoY.
- BC hotel industry supported 62,300 direct jobs in 2023, with 15% growth.
- Management positions in hotels grew by 7.2% to 28,900 roles nationally in 2023.
- Quebec employed 58,200 in hotels, with F&B staff at 22,100 in 2023.
- Alberta hotel employment reached 41,500, boosted by oil recovery in 2023.
- Part-time hotel workers totaled 145,600 across Canada in Q4 2023.
- Toronto metro area hotels had 52,400 employees, highest concentration.
- Culinary staff in hotels increased 14.5% to 38,200 positions in 2023.
- Vancouver employed 29,800 in hospitality hotels in 2023.
- Female representation in hotel workforce was 54.3% or 167,000 workers in 2023.
- New hires in Canadian hotels totaled 92,400 in 2023, turnover at 32.1%.
- Maintenance and engineering staff numbered 19,500 in hotels nationwide 2023.
- Manitoba hotel jobs grew to 12,100, up 6.8% from 2022.
- Sales and marketing roles in hotels: 15,200 employees in 2023.
- Indigenous employment in hotels rose to 8,500 positions or 2.7% share.
- Average hotel wage was CAD 28.45/hour, up 5.2% in 2023.
Employment Statistics Interpretation
Canada's hotel industry is thriving and hiring everyone from chefs to cleaners at a rapid clip, but with nearly a third of the staff turning over yearly, it’s clear the sector is still trying to figure out how to keep the party going after the check-in rush ends.
Occupancy Rates and ADR
- National hotel occupancy rate averaged 68.4% in 2023, recovering to 92% of 2019 levels.
- Toronto hotels achieved 74.2% occupancy in Q4 2023, driven by business travel rebound.
- Vancouver luxury segment occupancy hit 79.5% in summer 2023, up 11.3% YoY.
- Average ADR across Canada was CAD 198.70 in 2023, a 14.6% increase from 2022.
- Calgary hotels saw 65.8% occupancy in 2023, boosted by energy sector events.
- RevPAR for Montreal upscale hotels reached CAD 167.40 in Q3 2023.
- Rural Canadian hotels averaged 55.2% occupancy in 2023, lagging urban by 15 points.
- Niagara Falls hotels maintained 82.1% occupancy annually in 2023 due to tourism.
- Edmonton midscale occupancy was 62.4% in 2023, with ADR at CAD 142.80.
- Peak summer occupancy in Banff hotels reached 95.6% in July-August 2023.
- Winnipeg hotels averaged 64.7% occupancy, with RevPAR up 13.2% to CAD 110.50.
- Halifax resort hotels hit 77.3% occupancy in 2023, driven by cruise arrivals.
- Saskatoon hotels saw occupancy rise to 59.8% in 2023 from 51.2% in 2022.
- Quebec City luxury ADR was CAD 312.40 with 71.5% occupancy in 2023.
- Regina economy hotels averaged CAD 118.90 ADR at 57.9% occupancy.
- Ottawa-Gatineau border hotels had 69.2% occupancy, RevPAR CAD 145.20.
- Kelowna hotels achieved 76.4% summer occupancy with CAD 245.60 ADR.
- Thunder Bay hotels occupancy at 58.3%, up 9.7% YoY in 2023.
- Victoria BC hotels RevPAR CAD 198.70 at 73.8% occupancy annually.
Occupancy Rates and ADR Interpretation
Despite a patchwork recovery where business hubs and tourist traps enjoy premium rates and near-full capacity, much of Canada's hotel landscape remains a tale of two markets—one charging briskly ahead and the other still waiting in the lobby.
Revenue and Financial Metrics
- In 2023, the Canadian hotel industry generated total revenue of $28.4 billion, reflecting a 15.2% year-over-year growth driven by domestic leisure travel recovery.
- Hotel room revenue in Ontario alone accounted for 42.7% of national totals in Q4 2023, totaling $3.2 billion.
- Average daily rate (ADR) for luxury hotels in Toronto rose to CAD 456.30 in 2023, up 18.4% from 2022.
- Total RevPAR for Vancouver hotels reached CAD 212.50 in December 2023, a 14.1% increase YoY.
- Banquet and catering revenue contributed 11.3% to overall hotel income in Canada in 2023, equating to $3.1 billion.
- Quebec's hotel sector saw food and beverage revenue grow by 22.6% to CAD 2.8 billion in 2023.
- National hotel profit margins averaged 28.4% in 2023, highest since pre-pandemic levels.
- Upscale hotels in Calgary generated CAD 1.1 billion in room revenue in 2023, up 19.7%.
- Total ancillary revenue from spas and wellness services hit CAD 850 million across Canada in 2023.
- Alberta hotels reported CAD 4.2 billion in total sales in 2023, with a 16.8% growth rate.
- Independent hotels' revenue share was 23.5% of the national total, amounting to $6.7 billion in 2023.
- Meeting and event revenue surged 25.4% to CAD 2.9 billion in urban Canadian hotels in 2023.
- British Columbia's hotel EBITDA grew by 31.2% to CAD 1.8 billion in fiscal year 2023.
- Midscale hotels nationally achieved CAD 145.20 ADR in Q3 2023, contributing $4.5 billion annually.
- Parking revenue in major city hotels averaged CAD 45 per night, totaling $450 million yearly.
- Franchise hotels outperformed independents with 17.9% revenue growth to $21.7 billion in 2023.
- Winter season revenue in ski resort hotels rose 28.3% to CAD 1.2 billion in 2022-2023.
- Ottawa's convention center hotels generated CAD 950 million in 2023, up 20.1%.
- Economy hotels' total revenue hit CAD 5.6 billion, with 12.4% YoY growth in 2023.
- National hotel tax revenue contributions reached CAD 3.4 billion to governments in 2023.
Revenue and Financial Metrics Interpretation
While Toronto's luxury suites are now priced like a mortgage payment and Vancouver's hotels are minting money, the real story of Canada's 2023 hotel boom is that everyone, from Quebec's diners to Calgary's upscale guests and even your car in a parking spot, decided to pitch in for a record-breaking $28.4 billion party, proving the industry's recovery is not just booked but wildly profitable.
Supply and Development
- The total number of hotel rooms in Canada stood at 1,248,300 in 2023.
- New hotel room openings totaled 12,500 units across Canada in 2023.
- Ontario added 4,200 luxury rooms in Toronto and GTA in 2023.
- Vancouver pipeline includes 3,800 rooms under construction for 2024-2026.
- Calgary saw 1,100 new midscale rooms open in 2023 amid convention growth.
- National hotel room growth rate was 1.0% in 2023, lowest in 5 years.
- Quebec province has 212,400 hotel rooms, 17% of national inventory.
- Renovations completed on 85,000 rooms valued at CAD 2.1 billion in 2023.
- Alberta's hotel room count reached 98,700 with 900 new additions.
- Independent hotels represent 32.4% of total room supply or 404,000 rooms.
- Montreal added 1,500 upscale rooms in 2023 pipeline acceleration.
- Niagara region expanded by 800 rooms focused on resorts in 2023.
- BC coastal hotels under development: 5,200 rooms by 2025.
- Halifax saw 650 new rooms open, increasing supply by 4.2%.
- Winnipeg hotel pipeline: 1,200 rooms planned for 2024-2027.
- Ottawa conversions added 450 rooms from office to hotel in 2023.
- Saskatoon supply grew 2.1% with 300 new rooms in 2023.
- Luxury segment rooms: 156,000 or 12.5% of total inventory.
- Economy hotel rooms dominate at 512,400 units or 41% share.
- Kelowna added 420 resort rooms in 2023 summer peak.
Supply and Development Interpretation
Canada's hotel industry is cautiously building its future, one luxury tower and converted office at a time, but with a sluggish 1% national growth rate, it seems we're more focused on renovating our existing wardrobe than going on a shopping spree.
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