In Brief: Canada’s hotel industry posted its strongest year-over-year increases in average daily rate and revenue per available room since 2024, fueled by major events in key markets.
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World Cup host markets Toronto and Vancouver already saw rate-driven impacts for June. – Image Credit Unsplash
Canada’s hotel industry recorded its highest year-over-year growth in average daily rate (ADR) and revenue per available room (RevPAR) since 2024, according to May 2026 data from CoStar.
In May 2026, national occupancy reached 70.7%, up 0.9% from the previous year. ADR rose 9.5% to CAD233.40, and RevPAR increased 10.5% to CAD165.02. The ADR growth was the highest for any month since November 2024, while the RevPAR increase was the largest since December 2024.
Quebec led all provinces and territories with the largest increases in key performance metrics: occupancy rose 5.9% to 72.1%, ADR climbed 20.0% to CAD276.62, and RevPAR jumped 27.1% to CAD199.49. Among major markets, Montreal posted the strongest gains, with occupancy up 8.1% to 78.0%, ADR up 26.7% to CAD313.08, and RevPAR up 36.9% to CAD244.09. Both Quebec and Montreal were impacted by the Canadian Grand Prix, which moved from June to May in 2026.
World Cup host markets Toronto and Vancouver already saw rate-driven impacts for June. On June 12, Toronto’s ADR increased 47.6%, and RevPAR rose 36.2%. On June 13, Vancouver’s ADR jumped 54.0%, and RevPAR climbed 30.4%. As of June 15, bookings for Vancouver’s next match on June 24 stood at 64%, down 8.6% year over year, with Downtown Vancouver occupancy at 66.3%, a 14.3% decrease from the previous year.