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City of Vaughan

Vaughan Accommodation Occupancy Rate Update – Q2 2024

HIGHLIGHTS

  • Cumulative year-to-date (YTD) room nights sold at the end of Q2 2024 was 275,383.
  • The number of room nights sold in Q2 2024 was 16.2% higher compared to last quarter (Q1 2024).
  • Compared to the same quarter last year, room nights sold in Q2 2024 declined by 2.1%, currently at 148,015 compared to 151,133 reported in Q2 2023.
  • Hotel occupancy rate in Q2 2024 was 83.4%. This represents an increase of 10.8 percentage points from the previous quarter.
  • Year-over-year (YOY), hotel occupancy rate in Q2 2024 declined 1.0 percentage points; currently at 83.4% compared to 84.4% reported in the same quarter from the prior year (Q2 2023).
  • The City of Vaughan’s occupancy rate in June 2024 was 1.1 percentage points higher than the average across all hotels in York Region during the same month.
  • Average Daily Rate (ADR) for hotels in Vaughan in June 2024 was $202.89, which was $8.83 higher than the overall average for all hotels in York Region during the same month.
  • Revenue per Available Room (RevPAR) for hotels in Vaughan in June 2024 was $179.00, which was $9.98 higher than the overall average for all hotels in York Region during the same month.

BACKGROUND

The Tourism Vaughan Corporation (TVC) is Vaughan’s destination marketing and development organization (DMO) with the mission to develop and promote Vaughan as a tourist destination for leisure, sport and business visitors. To achieve these goals, the TVC’s plan and budget utilize 50% of the revenues generated by the Vaughan Municipal Accommodation Tax (MAT) pursuant to By-law 029-2019.

 

The Municipal Accommodation Tax (MAT), set at 4.0%, came into force and effect on April 1, 2019.

 

The City of Vaughan’s MAT remitters include 16 hotel and motel operators, and over 50 short-term rental operators. MAT remitters in Vaughan submit their collections data to the city monthly or quarterly. The projection for 2024 year-end MAT collection is $3,859,000 and is based off prior year actual collections and industry trends analysis prepared by CBRE Valuation & Advisory Services.

 

Data on local and regional hotel room nights sold, occupancy rates, revenue, ADR, and RevPAR are provided by Central Counties Tourism (CCT) who compiles data from STR Inc., a global leader in hospitality data and analytics. CCT works to develop and market the regions of York, Durham, and Headwaters as a visitor destination. The data provided helps TVC generate insights about Vaughan’s overnight stay market performance, trends and to benchmark against Regional averages.

 

ANALYSIS

  • Cumulative year-to-date (YTD) room nights sold at the end of Q2 2024 was 275,383.

 

  • The number of room nights sold in Q2 2024 was 16.2% higher compared to last quarter (Q1 2024).

  • Compared to the same quarter last year, room nights sold in Q2 2024 declined by 2.1%, currently at 148,015 compared to 151,133 reported in Q2 2023.

  • Hotel occupancy rate in Q2 2024 was 83.4%. This represents an increase of 10.8 percentage points compared to the previous quarter. This increase is expected as visitor traffic increases to its peak in the Summer months.

 

  • Year-over-year (YOY), hotel occupancy rate in Q2 2024 declined 1.0 percentage points; currently at 83.4% compared to 84.4% reported in the same quarter from the prior year (Q2 2023).

 

  • The City of Vaughan’s hotel occupancy rate in June 2024 was 1.1 percentage points higher than the average across all hotels in York Region during the same month.

  • Average Daily Rate (ADR) for hotels in Vaughan in June 2024 was $202.89. This is $3.88 lower than the $206.77 rate in the same month from the prior year (June 2023).

 

  • ADR for hotels in Vaughan in June 2024 was $8.83 higher than the overall average across all hotels in York Region during the same month.

  • Revenue per available room (RevPAR) for hotels in Vaughan in June 2024 was $179.00. This was $7.29 lower than the $186.29 RevPAR in the same month from the prior year (June 2023).

 

  • RevPAR for hotels in Vaughan in June 2024 was $9.98 higher than the overall average across all hotels in York Region during the same month.

NEXT STEPS

Tourism Vaughan will continue to monitor and report on trends in room nights sold, MAT remittances, occupancy rates, ADR, and RevPAR on a quarterly basis in order to assess progress of actual collections against budget and to compare trends observed in occupancy and overnight visitor data as a measure of the health of the visitor economy. Communications, Marketing and Engagement will be employing its channels to help share this news.