Market Report
Toronto Hospitality Market Report
2025 Investment Forecast
Waning Demand Across Travel Segments
Slows Growth in Key Revenue Metrics
Weakening economy normalizes hotel performance. After rapid growth coming out of the health crisis thanks to a rebound in travel demand, Toronto’s hotel sector saw overall performance ease last year. While the Toronto International Film Festival in September and the six Taylor Swift concerts in November spurred momentum in key revenue metrics over the latter months of 2024, overall gains waned compared with recent years. A softening in the broader economy created a pullback in discretionary spending and corporate travel. Looking ahead, with leisure travellers reporting a much shorter booking window – giving limited visibility into future demand – growth could remain soft over the first half of 2025, as travellers continue to monitor non-essential spending. As borrowing costs trend down further over the course of this year, however, travel demand could pick up in the second half in both the leisure and corporate segments. Moreover, Toronto remains an attractive destination for international visitors and hosts many largescale events. A weak Canadian dollar could further fuel demand over the latter parts of this year and into 2026, offering an additional boon for investors.
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