Canada’s hotels are earning record room rates and revenues, says a new CoStar report.

“The increased cash flow allows hoteliers to pay for higher debt service costs, other costs through the bottom line, property improvement plans and general capital expenditure projects which most fell behind on during the pandemic,” Laura Baxter, CoStar Group’s director of hospitality analytics for Canada in a news release.

In July, the average daily room rate climbed 7.7% year-over-year to $232.13, according to CoStar. Revenue per available room posted a similar increase, rising 7.8% to $175.42.

Meanwhile, monthly occupancy level reached its highest point, 75.6%, since August 2022. Occupancy rose marginally (0.1%) from July 2022. Vancouver led major markets with 87% occupancy, which represented a 240-basis-point increase.