Canada’s hotel industry recorded its most robust month of 2025 in May, driven by a powerful resurgence in travel demand, regional tourism, business travel, and a calendar packed with seasonal events. New national hospitality data reveals that provinces such as Saskatchewan and Manitoba, alongside key urban hubs like Calgary and Montreal, led the country’s exceptional growth across all major hotel performance indicators.
According to industry analytics, national hotel occupancy rose to 70.2% in May, up 1.9% year-over-year. Revenue per available room (RevPAR) hit CAD 149.96—marking a 5.3% increase—while the average daily rate (ADR) climbed 3.3% to CAD 213.57. These metrics signal Canada’s continued travel recovery and expanding tourism footprint heading into the high-demand summer season.
Saskatchewan and Manitoba Lead Provincial Gains
The standout performers in May were Saskatchewan and Manitoba, each experiencing sharp year-over-year increases in both occupancy and RevPAR. Saskatchewan’s RevPAR surged 16.2% to CAD 102.80—driven by an 8.7% rise in occupancy and a 6.9% jump in ADR, reaching CAD 151.97. Likewise, Manitoba matched Saskatchewan’s occupancy growth at 8.7%, bringing its occupancy level to an impressive 74.0%.
Both provinces benefited from strong intra-provincial travel, workforce mobility linked to infrastructure and energy sectors, and a calendar of local festivals and sporting events. The performance boom in these regions points to an expanding distribution of tourism activity beyond traditional hotspots.
British Columbia Maintains High-Value Leadership
British Columbia continued to dominate in absolute hotel performance values. With an occupancy rate of 74.7%—the highest among all provinces—and an ADR of CAD 255.82, the province remains a national revenue driver. Although its ADR saw a modest 0.1% year-over-year increase, the province’s consistency in volume and pricing confirms its resilient tourism appeal.
Destinations like Vancouver, Victoria, and the mountain resort of Whistler remain magnets for both leisure and group travel, particularly as international arrivals and event-based tourism pick up.
Urban Markets Rebound as Calgary and Montreal Excel
Urban centers saw significant gains, especially Calgary and Montreal. Calgary’s hotel occupancy soared by 8.2% to reach 72.3%, while its RevPAR increased by 14.7% to CAD 129.13. This growth is attributed to a revitalized business travel segment, weekday corporate bookings, and weekend event traffic.
Montreal recorded the highest ADR growth in Canada for May, rising 6.9% to reach CAD 248.00. The city’s thriving calendar of cultural events, conventions, and festivals—such as MURAL Festival and early summer celebrations—has fueled both leisure and business demand, adding upward pressure to hotel pricing.
These urban success stories reinforce the role of major cities in driving national tourism growth while reflecting a more balanced travel economy combining both event-driven and independent leisure bookings.
Vancouver Continues to Command Premium Position
Despite a slight year-over-year dip, Vancouver retained the highest hotel occupancy rate in the country at 83.3%. ADR in the city reached a national high of CAD 306.06, although it fell 2.6% compared to May 2024. The small decline likely reflects a return to more stable pricing after two years of steep post-pandemic recovery.
Nonetheless, Vancouver remains Canada’s most lucrative hotel market. Its coastal charm, accessibility to the Pacific Rim, and year-round event calendar continue to support high occupancy and premium rates, making it a cornerstone for hotel operators and tourism stakeholders.
Nationwide Growth Signals Broader Hospitality Recovery
The exceptional hotel performance in May reflects a broader recovery across Canada’s hospitality sector. In contrast to previous years, growth is no longer concentrated solely in gateway cities. Emerging regional markets such as Saskatchewan and Manitoba are gaining revenue strength and national visibility.
Meanwhile, corporate bookings are rebounding in cities like Calgary, while international and event-led travel is keeping demand high in Montreal and Vancouver. The spread of RevPAR growth across secondary markets demonstrates a diversification in Canada’s tourism economy, suggesting a more sustainable recovery path.
Strong Outlook as Summer Travel Peaks
With summer underway, Canada’s hotel industry is entering its peak season with considerable momentum. Group travel, extended-stay bookings, and domestic tourism are on the rise. Provinces are also rolling out festivals, conferences, and cultural events—further boosting travel intent and hotel demand.
The Tourism Industry Association of Canada (TIAC) projects continued growth through Q3, supported by improving airline connectivity, easing inflation, and high levels of travel confidence among Canadians and international visitors.
Conclusion: A New Chapter for Canada’s Tourism Resurgence
May 2025 marked a turning point for Canadian hospitality, with the strongest monthly hotel performance year-to-date signaling a full-fledged resurgence in tourism demand. With Saskatchewan, Manitoba, and Calgary leading the growth trajectory and urban markets holding strong, Canada’s hotel sector is well-positioned for sustained success.
As hotels prepare to meet peak summer demand, the sector’s recovery momentum is expected to continue—driven by regional tourism expansion, business travel revival, and a diverse event landscape that draws visitors nationwide.
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