Edmonton Hospitality Market Report

Employment influencing hotel sector. Hotel occupancy is back in line with 2019 levels. This recovery has been fueled by leisure travel, but some acceleration in business travel amid the completion of the Trans Mountain Pipeline and a well-performing oil and gas sector have contributed as well. Total passenger traffic rose 30 per cent annually in 2023 as a result of these improving demand drivers. Looking ahead, the metro’s hotel sector will likely see short-term gains as the Edmonton Oilers recently advanced to the NHL’s Stanley Cup finals, fueling demand for rooms. Hotel performance in the metro also tends to be influenced by weekday travel — which currently lags behind 2019 levels — providing headroom for continued improvement. Given that Edmonton is the capital city of Alberta, the gradual return of in-person public sector meetings is likely to benefit weekday demand.  The metro is also the oil and gas servicing hub of Canada, and with a positive short-term outlook for the energy industry, further weekday demand could materialize. These factors combined are set to support additional occupancy gains and boost hotel revenue metrics.