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Market Report

Montreal Hospitality Market Report

3Q 2023

Hotel Revenue Rising to Post-Pandemic High;
Citywide Events Drive Further Improvement

Return of foreign travelers driving sector recovery. Montreal’s post-pandemic recovery in hotel occupancy has been largely driven by a swift return of international visitors. Air passenger traffic statistics show that between January and April of 2023, foreign passenger volume was 3.7 per cent higher compared to the same period in 2019. This was led by travel to and from overseas destinations, which has risen 8.4 per cent above the pre-pandemic level. While domestic air passenger volume still lagged behind, the rebound in international travel — which now makes up over 70 per cent of the air traffic in and out of Montreal — was strong enough to aid a significant improvement in hotel revenue metrics in the first half of 2023. For the remainder of this year, 12-month growth in both ADR and RevPAR is expected to remain positive as consumers are still prioritizing travel in the post-pandemic era. This momentum, however, may pull back due to already-elevated revenues seen in the second half of 2022.
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