Market Report
Ottawa Hospitality Market Report
2025 Investment Forecast
Hotel Outlook Generally Positive,
Though Investors Ponder Some Emerging Risks
Supply-side factors to be monitored. As Canada’s national capital and home to a diverse economy offering ample employment opportunities, festivals and museums, Ottawa saw a robust recovery in hotel fundamentals coming out of the pandemic. Combined with no completions of note over the past two years, performance metrics saw record gains. Slower economic growth in 2024, however, has caused a pullback in discretionary spending that impacted both leisure and corporate travel demand. Consequently, daily rates edged down slightly in 2024, as some hoteliers attempted to encourage bookings. Looking ahead, Ottawa’s plethora of tourism options keeps the metro’s hotel outlook generally positive. Travel demand is expected to pick up over the second half of 2025, as a less restrictive monetary environment aids consumer spending. Nevertheless, some risks should be noted for investors. The federal government plans to cut travel spending as a cost-saving initiative, which could keep weekday occupancy lower in the nation’s capital. Hotel inventory is also set to expand by nearly 10 per cent in the next few years, creating supply-side pressure that could moderate revenue growth.
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