Canada Hospitality National Report

Fundamentals to soften in 2025. Trade tensions and their impact on Canada’s economy will shape the outlook for the country’s hospitality sector in 2025. Higher tariffs from the United States are expected to slow Canada’s economic growth this year. As a result, consumer and business spending – particularly on discretionary goods and services – is projected to decelerate, directly weighing on demand in the accommodation industry. That said, a shift in travel preferences towards domestic destinations is set to provide a backstop. On the supply side, hotel deliveries are forecast to reach an eight-year high, as Canada prepares for an anticipated influx of visitors during the 2026 FIFA World Cup. As demand softens and supply growth accelerates, the national occupancy rate is forecast to edge lower this year, driven primarily by annual declines in the second half. Likewise, revenue metrics are poised to also register a modest annual drop.