Market Report
Edmonton Hospitality Market Report
2025 Investment Forecast
Group and Corporate Demand Bucking
National Trend Creates Tailwind for Hotels
Economic makeup drives hotel fundamentals. Edmonton’s hotel sector outperformed the national average last year, as rising occupancy supported gains in key revenue metrics. The Edmonton Oilers run to the Stanley Cup Finals drove hotel demand in the spring and summer months. Looking more broadly over 2024, performance was also fuelled by a drastic improvement in group demand, which pushed ahead of pre-pandemic levels. Similarly, weekday occupancy also surpassed pre-pandemic measures amid strong corporate demand. Over the coming year, these trends are likely to hold. The metro’s hotel sector will continue to benefit from consistent public sector corporate demand as Alberta’s capital city, as well as from a stable resource sector outlook. While ongoing economic diversification is expected to loosen the hotel sector’s reliance on the energy industry, the recent opening of the Trans Mountain Pipeline is welcome news for the sector at large. On the supply side, although there are currently no projects under construction, over 400 rooms lay in wait in final planning. With Edmonton boasting the lowest occupancy rate among major Canadian metros, these potential developments could create some supply side pressures over the longer term.
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