Canada Hotel Market, H1 2019

High-End Luxury Hotels 

Defining Characteristics: 

• Uniqueness of Product: High-end luxury hotels are often situated in distinctive locations, featuring luxurious materials and traditional service standards.

• Brand Imagery: The brand image is crucial, often associated with luxury and exclusivity.

• High Price Point: These hotels maintain high price points to ensure exclusivity and support high levels of service and amenities. 

Key Trends: 

• Loyalty Programs: Programs like “Aman Junkie” and “Fans of Mandarin Oriental” remain relevant.

• Privacy: Guests value discreet service and private accommodations.

• Personalized Services: High-end luxury hotels emphasize catering to individual preferences.

• Exclusive Experiences: Guests seek unique and private experiences.

• Sustainability: There is a growing trend towards luxury that is also environmentally friendly. 

Examples: Four Seasons, Ritz-Carlton, Shangri-La, St. Regis, Mandarin Oriental, Waldorf Astoria, Rosewood, Grand Hyatt. 

Luxury Boutique Hotels: 

Defining Characteristics: 

• Location: Typically, in high-density or landmark areas.

• Size: Less than 200 rooms.

• Design: High-impact visual design with unique furnishings.

• Service: Personalized and connected service, often less discreet than high-end luxury.

• Local Essence: Aim to capture the local culture and essence.

• Younger Clientele: Generally, cater to a younger demographic.

Key Trends: 

• Technology: Essential for guest experience, including in-room devices and smart technology.

• Modern Marketing: Focus on new marketing techniques, such as influencer marketing.

• Immersive Experiences: Guests seek culturally attuned and locally inspired experiences.

• Service Style: Personalized but not necessarily discreet; more interactive. 

Examples: Kimpton Hotels, W Hotels, Andaz, Hotel Indigo, Edition, Thompson, Canopy. 

Performance Comparison: Toronto and Montréal 

Toronto: 

• Occupancy Rates: High-end luxury hotels generally have slightly lower occupancy rates compared to luxury boutique hotels. The differential has varied between 5-10 percentage points.

• ADR (Average Daily Rate): High-end luxury hotels have a significantly higher ADR, with a differential of approximately $175-$192 over boutique hotels.

• RevPAR (Revenue per Available Room): High-end luxury hotels outperform luxury boutique hotels by an average of $151 annually. 

Montréal: 

• Occupancy Rates: Similar trends to Toronto, with luxury boutique hotels having slightly higher occupancy rates. The differential averaged 2.5 percentage points between 2012-2018.

• ADR: High-end luxury hotels have an ADR differential of approximately $115-$113 over boutique hotels.

• RevPAR: High-end luxury hotels have a differential of $80-$65 in RevPAR compared to boutique hotels. 

Canadian Hotel Industry Performance 

Key Performance Indicators (2018): 

• Occupancy: Close to 66% nationally.

• ADR: $157, a 4.3% increase from 2017.

• RevPAR: $103, a 5.3% increase from 2017. 

First Quarter 2019: 

• Occupancy Rates: Varied between 38%-63% across provinces, with a national average of 57%.

• ADR: $149, a 1.2% increase from the same period in 2018.

• RevPAR: $84, a 0.7% increase from the same period in 2018. 

 Provincial Insights: 

• Strong Performers: British Columbia, Manitoba, New Brunswick, Prince Edward Island.

• Weak Performers: Newfoundland and Labrador faced significant declines in occupancy and RevPAR. 

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