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Ottawa Led All Major Canadian Cities for Hotel Occupancy Growth in 2025

Ottawa's hospitality sector had a banner year in 2025, with the city posting the highest hotel occupancy boost of any major Canadian city, hitting 70% for the year, according to a new Avison Young report.

·ottown·3 min read
Ottawa Led All Major Canadian Cities for Hotel Occupancy Growth in 2025
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Ottawa Topped the Charts for Hotel Performance in 2025

Ottawa's hospitality industry had a lot to celebrate in 2025. A new report from commercial real estate firm Avison Young shows that Ottawa outperformed every other major Canadian city when it comes to hotel occupancy growth last year, hitting a 70 per cent occupancy rate and recording the biggest year-over-year improvement in the country.

For a city that sometimes gets overshadowed by Toronto and Vancouver in national conversations about tourism and hospitality, this is a meaningful benchmark, and a sign that Ottawa's appeal as a destination is genuinely on the rise.

A Strong Winter Season Made the Difference

According to the Avison Young report, a particularly strong winter season was a key driver of Ottawa's hotel performance. That's noteworthy because winter is traditionally a challenging period for hospitality markets in cold-weather Canadian cities. Breaking through that seasonal headwind and posting strong winter numbers suggests something more structural is happening in Ottawa's tourism picture.

Winter events, the city's walkable ByWard Market and museum corridor, and an increasing number of conferences and conventions held in the capital likely all contributed to the strong seasonal showing.

What's Driving Ottawa's Tourism Momentum

Ottawa has invested steadily in its tourism infrastructure over the past decade. The expansion of the Shaw Centre convention facilities, the continued development of the Rideau Canal corridor, and the capital's world-class museum cluster, from the National Gallery to the Canadian Museum of History just across the river in Gatineau, give visitors a compelling reason to come and stay.

Add to that Ottawa's restaurant scene, which has matured significantly and earned national recognition in recent years, and you have a destination that can hold visitors' attention beyond a quick day trip.

Government and public sector activity also drives significant hotel demand in the capital. Political events, federal consultations, and government-related travel mean Ottawa's hotel market has a more stable base of demand than purely tourism-dependent cities.

70% Occupancy: What It Means

A 70 per cent hotel occupancy rate is a healthy benchmark for a major market. It suggests that Ottawa's hotel supply, which has seen some new additions in recent years, is being absorbed without excess, and that room rates can remain strong enough to support continued investment in the sector.

For hotel operators in the city, 2025 was clearly a good year. The question now is whether that momentum can be sustained and built upon in 2026 and beyond.

The Bigger Picture for Ottawa's Economy

Hospitality and tourism are important economic drivers that often get less attention than tech or government in Ottawa's economic narrative. But hotels, restaurants, attractions, and the businesses that serve visitors represent significant employment and economic activity for the city.

Ottawa leading the country in hotel occupancy growth is the kind of signal that attracts further investment, new hotels, new restaurants, new attractions, creating a virtuous cycle that benefits residents and visitors alike.

Source: Ottawa Business Journal

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