Canada Hotels Post 14% RevPAR Jump, Strongest Since June 2023

Canada's hotels recorded a 14.0% year-over-year increase in revenue per available room in September 2026, the country's largest RevPAR gain since June 2023, according to data from CoStar, the Arlington, Virginia-based real estate analytics firm.

The occupancy picture was nearly as strong. Occupancy reached 77.9%, up 5.0% from September 2025, the highest year-over-year lift since May 2023. Average daily rate rose 8.5% to CAD257.76. RevPAR closed at CAD200.79.

A 5% occupancy gain on top of an 8.5% rate gain means operators filled more rooms at higher prices simultaneously — a combination the Canadian market has not managed in more than three years.

Which markets drove the gains?

Quebec led all provinces and territories across all three key performance metrics:

• Occupancy: +10.4% to 80.9%
• ADR: +10.2% to CAD267.15
• RevPAR: +21.6% to CAD216.20

Montreal, the province's largest market, posted the highest gains among major markets in occupancy (+13.0% to 84.3%) and RevPAR (+25.5% to CAD232.65). The market's performance was helped by several events and concerts, including the FIP World Congress of Pharmacy and Pharmaceutical Sciences, the Rush reunion tour, and POP Montreal.

That event calendar matters for anyone projecting the trend forward. Group business and touring acts compress demand into fixed windows; they lift rate and occupancy together, but they do not repeat on a schedule operators control.

Vancouver registered the largest ADR increase among major markets, up 11.5% to CAD373.42. The source data does not break out what drove Vancouver's pricing strength, and CoStar's release offers no demand-side explanation for it.

How reliable is the sample?

CoStar's hotel performance sample comprises 95,000 properties and 12.2 million rooms worldwide. The September figures cover Canada's provinces, territories and major markets, measured against September 2025 results.

The figures are nominal, not inflation-adjusted. An 8.5% ADR increase overstates real pricing power by whatever Canadian inflation ran during the period, a figure the release does not address.

Who is behind the data?

CoStar Group (NASDAQ: CSGP) is a commercial real estate information and analytics company founded in 1986 and headquartered in Arlington, Virginia. Its hospitality data arm, STR, is a global leader in hotel benchmarking. The company's websites attracted over 139 million average monthly unique visitors in the fourth quarter of 2025.

What comes next?

The report covers September only. Whether the occupancy and rate gains hold depends on whether October and November event calendars, corporate travel demand and cross-border traffic sustain the compression Montreal enjoyed in September — and the CoStar release, by its nature, says nothing about any of that.