Hotels & Motels in Canada - Industry Market Research Report

Hotels & Motels in Canada - Industry Market Research Report
Hotels & Motels in Canada

Hotels and motels have benefited from rising incomes and population growth in recent years as consumers spent freely on vacations and hotel stays. But, when COVID-19 shut down tourism, hotel rooms were left empty, creating long-lasting financial and operational challenges. A travel slump through early-2021 left the industry struggling, as bookings stayed at a fraction of what they were in 2019. Yet, long periods at home left consumers with savings and pent-up demand to spend on trips as travel restrictions lifted. While enormous demand for travel led to a rapid recovery at hotels between 2022 and 2023, supply chain disruptions and labour shortages made it difficult for retailers to recover fully from the pandemic. Concerns about a recession and inflation in 2023 haven't stifled Canadian consumers' appetite for travel, keeping spending strong. The recent travel boom hasn't offset the pandemic's impact, leading industry-wide revenue to decline at a CAGR of 1.5% over the past five years – totaling an estimated $23.6 billion in 2023 – when revenue will rise an expected 4.0%.

The Hotels and Motels industry in Canada provides short-term lodging in facilities known as hotels, motels, motor hotels and resort hotels. These establishments may offer food and beverage services, recreational services, conference rooms and convention services, laundry services, parking and other services.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.