Montreal Hospitality Market Report

Supply growth influencing hotel sector. Montreal is one of Canada’s largest economies, offering a broad spectrum of employment opportunities, sporting events and a vibrant arts and culture scene. In the years leading up to the pandemic, the metro’s hotel sector experienced healthy performance as a result, with the average daily rate growing nearly 8.0 per cent annually and revenue per available room seeing double-digit gains. Montreal also has considerably more development land relative to Vancouver and Toronto. These factors combined led to substantial inventory growth over the past decade. Consequently, Montreal’s hotel sector experienced a slower recovery compared to other major urban centers across Canada, with RevPAR only exceeding 2019 levels last year. Nevertheless, with fewer projects started during the global health crisis, supply-side pressure is likely to soften over the coming years, helping to support a positive long-term outlook for the metro’s hospitality sector.