Calgary Hospitality Market Report

Leisure offerings and economic landscape shape outlook. Hotel performance in Calgary continued its upwards trend in 2024 amid the completion of the BMO Convention Centre expansion, a healthy energy sector, a diversifying economy and a recovery in recreational activities. These factors aided corporate, group and leisure travel demand. Looking ahead, leisure travel is expected to inch higher this year. Lower interest rates will likely boost discretionary spending, while Calgary’s proximity to the Canadian Rockies attracts with stunning mountain landscapes and outdoor activities. A less restrictive monetary environment and Alberta’s business-friendly policies will also support corporate investment and ongoing economic diversification. The opening of the Trans Mountain Pipeline – which will nearly triple oil exporting capacity – could lead corporate travel to see further growth here, as Calgary houses the head offices for several of Canada’s largest energy companies. In addition to an optimistic demand outlook, supply dynamics are also favourable, as hotel inventory has contracted over the past couple of years. While Calgary’s office conversion program could incentivize hotel development over the long term, supply-side pressures remain minimal.