Ottawa Hospitality Market Report

Government stability key for hotel performance. With Ottawa being the nation’s capital, the region attracts both leisure and corporate travel demand. Consequently, occupancy and revenue gains are forecast to outperform the national average over the long term. Nevertheless, investors should be aware of some risks that could emerge as a result of recently released federal budgets. In 2023, it was announced the government would cut roughly $7 billion in travel-related expenses. While this would be spread out across markets, hotel room demand in Ottawa would be disproportionately impacted given the large public sector presence. In addition, the 2024 budget indicated the federal government would allocate just over $1 billion to scale back its office holdings at a quicker pace and adopt a more flexible work arrangement. This could result in fewer in-person meetings and reduce the need to travel to the capital. The impact was felt in the first quarter of the year, when weekday occupancy was 15 per cent below the 2019 level — notably below the national average — with this trend expected to continue throughout 2024.