Toronto Hospitality Market Report

Large-scale events aid hotel demand. Over the second half of 2024, Toronto will host a number of events that will bolster hotel performance. Taylor Swift is holding six concerts in November — with Toronto being one of only two Canadian show locations. The Toronto International Film Festival in September will also welcome more attendees compared to last year, given the writers and actors strikes coming to an end. These demand drivers will support Toronto’s hotel sector, helping it outperform not only the broader economy but other hotel markets, as well, throughout Ontario and the country at large. However, with office vacancy rates remaining elevated and the return to in-person work not materializing as quickly as expected, weekday occupancy over the first half of 2024 was 4.0 per cent below the 2019 level and 9.0 per cent for the downtown submarket. While manageable, the structural shift toward hybrid work continues to provide some risk and is hindering a full recovery in the metro’s hotel sector.