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Market Report

Montreal Hospitality Market Report

2025 Investment Forecast

Cultural and Economic Diversity a
Boon for Montreal’s Hotel Fundamentals

Large-scale events a main driver in hotel performance. As Canada’s second-largest city, Montreal hosts a diverse economy, home to a world-class food scene as well as ample history, culture and events. These factors drove a recovery in corporate and leisure travel coming out of the pandemic. While restrictive interest rates have led the metro to experience weaker economic conditions over the past year, including a higher unemployment rate than the country at large, key hotel revenue metrics continued to show healthy gains in 2024, even with a slight drop in occupancy. Nevertheless, elevated interest rates have curbed business and consumer spending, causing group travel as well as weekday occupancy – a proxy for corporate demand – to fall behind pre-pandemic levels. With interest rates now trending down, however, these demand measures have runway to grow over the second half of 2025, likely driving another year of hotel revenue gains. This is not only supported by the metro’s diverse economy and widespread labour opportunities, but also from growing world-renowned events, such as Formula 1’s Canadian Grand Prix, the Montreal International Jazz Festival, Nuit Blanche and Osheaga.
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