Edmonton Hospitality Market Report
Momentum Continues to Build;
Limited Inventory Expansion Aids Sector Recovery
Sector fundamentals to record further gains. Driven by a rapid return of transient leisure travelers, Edmonton’s trailing 12-month hotel occupancy rate rose above 55 per cent in May 2023, a more than 1,000 basis point year-over-year increase. Key revenue metrics also recovered to pre-pandemic levels, with ADR surpassing $130 for the first time since 2016. Compared to the strong rebound in leisure travel, corporate and group travel is recovering at a slower pace as many companies have widely adopted online meetings, due to remote work and cost-cutting efforts amid rising interest rates. However, the heavy presence of the provincial government within the metro means that corporate demand will likely be well supported by the public sector. Hospitality fundamentals are expected to continue on an upward trajectory for the remainder of 2023, which will be further aided by an increase in leisure and corporate travelers.