B.C.’s hospitality sector for the first quarter of 2025 remained relatively unchanged for April 2025 compared to the same period last year.
That’s according to a Tuesday report from Cushman & Wakefield which found seven of the 10 provinces for hotels showed RevPAR (revenue per room available) gains in the first quarter of 2025, while three showed a decline in performance. The declines were felt in demand levels as all provinces showed positive ADR (average daily rate).
On the plus side, Saskatchewan came in at eight per cent, Alberta four per cent, and B.C. followed at 2.9 per cent.
Manitoba experienced the largest decline in RevPAR, dropping by 13 per cent, followed by Newfoundland at 8.4 per cent. In Nova Scotia, the province saw a slight decline in demand.
For Q1 of 2025, a coast-to-coast snapshot of the market performance showed mixed results, with half of the top 10 markets reporting growth in RevPAR. Vancouver’s decline was negligent coming in at 0.4 per cent. The highest RevPAR growth in Q1 2025 was in Quebec City. This was followed by Victoria at 8.6 per cent, Ottawa at 8.4 per cent, and Edmonton at eight per cent. Calgary and Winnipeg experienced significant declines with decreases of 5.3 per cent and 15.7 per cent, respecitively, the report noted.
RevPAR for hotels in Canada was up by 1.9 per cent compared to the same period last year, driven by a 2.9 per cent increase in ADR, which was offset by a 0.9 per cent decrease in occupancy.
The ADR for room was $186.11 and RevPAR was $103.46 with occupancy sitting at 55.6 per cent.
Looking to the future, the report said, room demand will soften and ADR should see growth continue through the traditionally busy summer season.
Occupancy and rate growth could be more challenged as the impact of tariffs works its way through the economy towards year end.
