With our headquarters in Montreal and a strong presence across the province, we are proud to work with several hotels in the provincial capital of Quebec City. The historical city is popular with tourists and locals, offering a range of hotel options from boutique historical inns to large corporate hotels.
To evaluate the performance of Rate Yield Clients against the market itself, we looked at the hotel results from June 1, 2022 to May 31, 2023 as compared to the results from June 1, 2023 through May 31, 2024. We also looked at CoStar data from the Quebec City Hospitality Submarket over the same period.
The market saw exceptional growth year-over-year, with average Occupancy growing at almost 3%, average ADR growing at 5.85%, and average revPAR growth for the year of 9%. This is especially notable as we are looking at the first tourism season post-pandemic. Even still, Rate Yield clients outperformed the market.
Rate Yield is designed to adapt the artificial intelligence to each hotel’s strategy, and to optimize rates in line with market conditions. As a result, we typically see hotels with more competitive pricing and higher conversion rates. In the case of our Quebec City clients, this resulted in average ADR growth of 4.94%, average occupancy growth of 31.59% and ultimately, average revPAR growth of 38%.
In the chart above you can clearly see in green the revPAR growth experienced by Rate Yield Clients, as compared to the market revPAR growth in blue.
When looking simply at the key performance indicators, without looking simply at growth we can see a slightly different story. With Rate Yield clients performing slightly below the market in terms of occupancy in the winter months, and above in the summer months. We also see that rates from June 2023 until May 2024 were typically on par with or above the market rates. This is likely due to the makeup of Rate Yield clients, which are located predominantly in tourist areas.
The increase in revenue, year over year, represents a return on investment of 112:1 for Rate Yield clients in Quebec City. We are thrilled to share these results, of which we are very proud and we look forward to seeing how these properties continue to grow their revenues with Rate Yield over years to come.
