Ottawa has something to brag about in the hospitality world: the capital outperformed other major Canadian cities when it comes to hotel occupancy in 2025, hitting a 70% annual rate according to a new industry report.
That number: the percentage of available hotel rooms that were actually occupied, puts Ottawa ahead of many peers in a year that was mixed for the Canadian hotel industry more broadly.
Why Ottawa Topped the Charts
Ottawa's hospitality sector has a built-in advantage that few Canadian cities can match: the federal government. Bureaucrats, diplomats, consultants, lobbyists, and politicians from across the country and around the world regularly need rooms in the capital. This steady stream of government-related travel provides a floor of demand that insulates Ottawa hotels from the peaks and valleys that hit leisure-focused markets more severely.
But it's not just government driving occupancy. Ottawa's tourism profile has strengthened meaningfully in recent years. The Canadian Museum of History in Gatineau draws significant cross-border and domestic visitors. Parliament Hill renovations, when complete, will add even more draw. And major events, including Bluesfest, Ottawa 67s and Senators playoff runs, PWHL games, and national commemorations, fill rooms on weekends and shoulder seasons.
The Numbers in Context
A 70% occupancy rate is considered strong in the industry. Industry benchmarks generally consider anything above 65-70% as healthy, and sustained performance at that level is what allows hotels to invest in facilities, retain staff, and keep room rates stable.
For comparison, leisure-heavy markets like Banff or Whistler see dramatic seasonal swings, while business-oriented cities like Ottawa tend to maintain more consistent year-round performance.
What This Means for Ottawa's Economy
Strong hotel performance is a proxy for broader economic health. It means conferences and conventions are choosing Ottawa, that travellers are visiting, and that the city's hospitality sector, one of the largest employers in any major city, is in good shape.
It also supports ancillary businesses: restaurants, retail, tourism operators, and transportation services all benefit when hotel occupancy is high.
Looking Ahead to 2026
Ottawa's hospitality sector is cautiously optimistic about 2026. The ongoing renovation of Parliament Hill is expected to eventually become a major tourist draw. The capital region's growing arts and festival scene continues to add events that bring visitors. And government activity remains a reliable baseline.
Source: Ottawa Business Journal. For more on Ottawa business and economic news, visit obj.ca.
