Montreal Hospitality Faces headwinds Despite Record Summer Demand
Montreal – Despite a surge in summer tourism, montreal’s hospitality sector experienced a challenging start to the year and remains strategically positioned against larger Canadian markets, according to recent data from Cushman & Wakefield and analysis by Tourisme Montréal.While Winnipeg and Halifax led the nation in revenue per available room growth-posting gains of +24.7% and +16.2% respectively-Montreal navigated early setbacks and continues to maintain a competitive average daily rate.
The city’s performance is notably noteworthy given a national trend of shifting travel preferences and external economic pressures. A arduous March, impacted by Donald Trump’s tariffs, saw Montreal’s revenue per available room decline by -17%.However, the city rebounded through the summer months, currently boasting an average rate of $247 – $20 above the national average for major cities – even with increasing hotel inventory. This positions Montreal favorably as other destinations grapple with capacity constraints and escalating costs.
According to Yves Lalumière, CEO of Tourisme Montréal, a direct comparison to Toronto is misleading. “If you give me 80 Live Nation concerts…with the Taylor Swifts of this world, a baseball team, the Blue Jays, who wins and three convention centers, we will not have the same results,” he stated. He further highlighted Vancouver’s hotel shortages, noting exorbitant prices – upwards of $325 for a four-star room – due to limited supply.
Lalumière emphasized Montreal’s proactive approach to hotel development, stating, “We are ahead of the parade, as we have had our growth in terms of the number of hotel rooms and we want to have people at our destination.” both Cushman & Wakefield and Tourisme Montréal base their findings on data provided by CoStar. The data suggests Montreal is strategically positioned to capitalize on future demand, despite facing unique challenges and a competitive landscape.
