The average Canadian hotel is renting for about $1,300 per night, but the real cost could be as high as $1.5 million, according to a new study by the University of Toronto’s Sauder School of Business.
The study says the average hotel room in the country has a price tag of $1 million, and it’s about to get even more expensive.
“The average hotel is costing you $1M per night in 2018, so you’re going to be paying $1YM per year for the privilege of being in that room,” said the study’s author, David Goulart.
“[We’re going] to be talking about a room in a two-bedroom house with a balcony, that has a bathroom, that costs about $700 a night.
That’s a $3M price tag for a hotel room, and that’s a lot of money.”
Goulart says this is not the first time we’ve heard about hotels selling for a lot more than they are worth.
A few years ago, the Ontario government announced it was moving forward with a plan to cap the price of hotel rooms in the province.
That plan was a response to a real estate bubble.
But it wasn’t long before prices began to rise again, this time with the advent of cheap airfares and new airport facilities.
And while prices are still relatively high compared to other parts of Canada, the trend is likely to accelerate in the next couple of years.
Goulard says this study should be a wake-up call for anyone who wants to rent cheap hotels in the future.
It’s important to note, however, that the study does not consider the cost of gas.