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Market Report

Toronto Hospitality Market Report

3Q 2023

Leisure Demand Leading Sector Recovery;
Government Support to Attract More Visitors

Sector recovery in full swing. Following a swift recovery in Toronto’s hospitality sector in 2022, a further rebound is expected this year. Within the first five months, the average occupancy rate rose to 70.1 per cent, with June’s rate surpassing 80 per cent. This recovery was driven by a strong rebound in leisure travel, which is expected to continue for the remainder of the year. However, with a slower return of corporate and group travel due to the rise of remote meetings, the average occupancy is expected to end the year slightly lower than the pre-pandemic level. As Canada’s monetary policy has turned more restrictive, firms may further cut spending on business travel, which could cause corporate demand to remain subdued for longer than anticipated. Many hoteliers in Toronto should continue to benefit from pent-up domestic and international leisure travel demand, which will likely lift total annual revenue.
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