Investing in Canmore 'Airbnbs': Occupancy, ADRs, Cap Rates & Returns Explained (2026): Part 2 in our series.

Investing in Canmore STRs: The Numbers That Make the Case (Part 2)

Part of our series on investing in Canmore short-term rentals. [Read Part 1 here.]

Welcome back. In Part 1 we made the qualitative case for Canmore — year-round demand, constrained supply, friendly regulations, and Alberta's explosive population growth. If you haven't read it yet, start there. But if you really want to get into the details and numbers on a specific property (or type of property) you should just reach out! We love to work directly with our prospective owners and can provide far more detail then we have included below. 

Ok, Now let's talk numbers.

Because at the end of the day, a great story only matters if the returns back it up. In this post we're pulling back the curtain on the actual data — occupancy, ADRs, real estate appreciation, seasonality, cap rates, and how Canmore stacks up against other premier mountain destinations in North America. Spoiler: in our opinion the value gap is still enormous.

1. How Big Is the Canmore STR Market?

The short answer: bigger than most people realize, and still growing.

There are currently about 2,900 active short-term rental listings in Canmore, depending on the season and platforms. That puts it firmly in the category of a mature, liquid STR market — not a fringe experiment — while still being small enough that a well-run, well-positioned property stands out.

What makes the market size particularly interesting is what's not allowed to grow: due to zoning restrictions, mountain geography, and strict permitting, the supply side is structurally capped. New legally-zoned Visitor Accommodation (VA) units are limited, and the pipeline for new builds is long and expensive. Demand, on the other hand, keeps climbing (in the summer anyways, which we’ll get into).

More guests chasing fewer legal units = strong pricing power for existing owners.

2. Occupancy: How Full Are These Properties?

This is where Canmore really shines.

The median occupancy rate across all Canmore STRs is approximately 70% — which is exceptional by any standard. For context, most STR market analysts consider anything above 60% to be a healthy, well-performing market. Canmore sits well above that benchmark (and again as noted previously June-Sept occupancy when rates are highest is over 90%).

But occupancy varies significantly by property quality and management:

Property Tier	Occupancy Rate	Typical Nightly Rate (CAD)
Top 10% (best-in-class)	85%+	$535+
Top 25%	75-80%	$375+
Median	~70%	$266
Bottom 25% (entry-level)	~50%	$194

The takeaway: the best-managed, best-presented properties don't just earn more per night — they also fill more nights. This is why professional management matters more in a competitive market, not less.

Note: For a real deep dive into the returns by property type (1br, 2br, 3br etc) please reach out to us directly at Hydeaway Stay

3. Average Daily Rates (ADRs): What Are Guests Actually Paying?

The market-wide ADR in Canmore sits at approximately CAD $345/night (roughly USD $250), with an average annual gross nightly revenue of over CAD $80,000 (and remember this stat includes studios and 1BR units too). Those are strong numbers for a Canadian mountain town — and they're only part of the story.

Premium 3BR properties regularly command $800+ per night during peak periods (in fact some of the best performing 3 or 4BR units bring in over $2,000/night in summer), and during major events or holiday weekends, rates for well-positioned units can spike significantly higher.

What drives ADR?

• Property quality and presentation (professional photography, amenities, luxury touches)
• Platform visibility and listing optimization
• Dynamic pricing strategy — using real-time demand data to adjust rates daily
• Direct booking capability (removing OTA commissions)

At Hydeaway Stay, our dynamic pricing approach means our owners aren't leaving money on the table during peak demand or pricing themselves out of the market during softer periods. It's one of the most impactful levers in the whole business. In fact Hydeaway Stay managed properties generally command over a $100+ premium to similar self managed properties!

4. Seasonality: Understanding the Rhythm of the Market

One of the most common questions from new investors is: "Does it really run year-round?" The answer is yes — but not uniformly, and understanding the rhythm is essential to setting realistic expectations.

Here's how the Canmore STR calendar breaks down:

Season	Months	Typical Occupancy	Typical ADR (CAD)	Notes
Peak Summer	June – Sept	85%+	$600+	Highest revenue months; hiking, Banff, Kananaskis
Peak Winter	December – March	55-65%	$280–$380	Ski season; Sunshine, Lake Louise, Norquay
Shoulder Peak	October - May	60-70%	$240–$300	Larch season, quieter crowds, Spring awakening, still strong
Shoulder Low	April & November	45–55%	$200–$240	Softest period; good for maintenance & owner use

The peak month (typically July) delivers occupancy of ~90% (on average, while Hydeaway’s are closer to 97%) with ADRs hitting $491. So in single month a nice 2BR unit can generate $15,000+ in gross revenue!

The slowest month (typically November) sees occupancy around 41% with ADRs near $228 — still generating meaningful revenue, but the right time to plan maintenance, refresh the property, or take your owner block.

The key insight: Canmore's two strong seasons (summer and ski) overlap with just enough shoulder season demand that smart owners generate revenue 10–11 months of the year. Very few mountain markets can say that!

Don’t forget though that 70%+ of revenues still come in June-September, but those extra months are nice!

Sources: Pricelabs and Hydeaway Stay data

 

5. Real Estate Appreciation: What Has the Market Done?

Here's where the long-term picture gets really compelling.

Canmore real estate has been one of the strongest-appreciating markets in Canada over the past five years:

Property Type	Avg. Price (2019)	Avg. Price (2025)	Appreciation
Detached / Semi-Detached	~$850,000	~$1.5M+	~76%
STR-zoned Condos	~$430,000	~$755,000–$820,000	~75–90%
All Residential (avg. $/sq ft)	~$430/sq ft	~$750–$772/sq ft	~75%

Sources: Canmore Banff Real Estate, AirROI, local MLS data. Note: figures are approximate and reflect market averages — individual properties vary.

To put that in perspective: a $700,000 investment in a Canmore STR condo in 2019 would be worth approximately $1.2–1.3M today — before accounting for any rental income earned along the way. And while the numbers above are broad statistics we've seen many of our clients up 1.5x on STR zoned properties purchased just a few years ago. 

Even in 2024-2025, as interest rates remained elevated and the broader Canadian market softened, Canmore detached home prices climbed 9.5% year-over-year, outperforming most urban markets. The combination of land scarcity and sustained tourism demand creates a floor under prices that simply doesn't exist in most markets.

And let’s not forget, when you have a strong brand, in unit design and a manager like Hydeaway Stay maximizing revenues working for you that helps drive appreciation even further!

6. How Does Canmore Compare to Other Mountain Towns?

This is where Canmore's value proposition becomes almost unfair to competitors.

Destination	Avg. Price/Sq Ft	Country	Notes
Aspen, CO	~$3,500–$4,500 USD	US	Most expensive ski market in the world
Telluride, CO	~$1,600–$2,500 USD	US	Boutique, ultra-luxury
Vail, CO	~$1,500–$3,500 USD	US	Varies heavily by village/zone
Whistler, BC	~$1,400 CAD+	CAD	Canada's most expensive ski market
Canmore, AB	~$1,100 CAD	CAD	Best value in class

The USD/CAD exchange rate makes this even more dramatic for American buyers: at current exchange rates, Canmore real estate effectively costs a U.S. buyer roughly 30% less than the Canadian dollar price suggests. A $800K CAD property costs a U.S. buyer approximately $580–600K USD — for a world-class mountain destination with comparable or superior outdoor access to most of the U.S. alternatives.

We've said it before and we'll keep saying it: Canmore is still the most undervalued world-class mountain destination in North America. The gap between Canmore and Whistler alone — let alone Vail or Aspen — is staggering. And it won't last forever.

7. Cap Rates: What Are the Actual Returns?

This is the question every serious investor eventually asks, and we'll be straight with you: cap rates in Canmore are good, but they're not incredible (anymore). This is a maturing premium market, not a distressed opportunity. At a high level here's what the math actually looks like: (but please reach out directly for a detailed projection on specific units)

Sample 2-Bedroom STR Condo — Illustrative Model:

Purchase price	~CAD $800,000
Gross annual revenue (median)	~CAD $96,000
Less: operating expenses (management, cleaning, supplies, insurance, utilities, maintenance — est. 45–50%)	~CAD ($43,000–$48,000)
Net Operating Income (NOI)	~CAD $48,000–$53,000
Gross Cap Rate	~5.0–6.75%

Note: These are market-average estimates based on industry data. Hydeaway Stay can happily prepare specific projections with actual revenues based on historical results for most zoned buildings in Canmore

A few important caveats:

• Top-performing properties do better. A new, well-managed, well-positioned property achieving $120K+ gross with controlled expenses can push cap rates into the 7–8% range.
• Financing matters. At current rates, cap rates on leveraged purchases may be tighter. Many investors in this market are partial-cash buyers or are managing equity from prior Canmore appreciation.
• Total return is the real story. A 6% cap rate on a property that also appreciates 10–15% annually is a 16–21% total return. That's the Canmore proposition — it's not just an income play, it's an asset appreciation play with strong income on top.

Note: Hydeaway does not build appreciation into our projections for clients as despite a strong track record of appreciation we have been in the market since 2006 and remember the financial crisis well

8. Are Canmore STRs a Good Inflation Hedge?

If you are worried about a world with rampant inflation, like we are at Hydeaway Stay then the short answer: is a strong yes!

Canada's CPI peaked at 6.8% in mid-2022, the highest inflation in 40 years. During that same post-pandemic period, Canmore real estate appreciated ~75–90% — dramatically outpacing cumulative inflation of roughly 22–25% over the 2019–2025 period.

The mechanics of why real estate hedges inflation are well understood:

• Replacement cost rises with inflation — building materials and labour get more expensive, protecting the value of existing stock
• Rents (and STR rates) rise with inflation — ADRs in Canmore have consistently tracked upward alongside broader price increases
• Hard asset scarcity — in a supply-constrained market like Canmore (and in our new AI world), inflation in construction costs directly supports existing property values
• Nominal debt stays fixed — if you borrowed $600K to buy a $800K property, inflation erodes the real value of that debt over time while your asset appreciates

Period	Canada CPI Cumulative Change	Canmore STR Property Appreciation
2019–2025	~22–25%	~75–90%
2020–2022 (peak inflation)	~11%	~40–50%

The verdict: Canmore STR properties have outperformed inflation by roughly 3–4x over the past six years. For investors worried about preserving purchasing power, that's a compelling track record.

9. The Bottom Line — What the Numbers Say

Let's bring it all together:

Metric	Canmore STR Market
Active STR listings	~2,900
Median occupancy rate	~70%
Market ADR	~CAD $345/night
Peak month ADR	~CAD $531/night
Average annual gross revenue (across all types)	~CAD $80,000
Estimated cap rate (median property)	~5.5–6.6%
Real estate appreciation since 2019	~75–90%
Price vs. Whistler ($/sq ft)	~20% cheaper
Price vs. Vail/Aspen (USD equiv.)	40-60% cheaper

Canmore isn't a secret anymore — but it's still underpriced relative to its peers. The combination of strong occupancy, solid ADRs, constrained supply, and a widening global tourism audience makes it one of the most well-rounded STR investment markets on the continent.

And we haven't even gotten to the U.S. demand story yet. In Part 3, we'll explore why American visitors represent one of the single biggest untapped growth drivers for Canmore — and why the exchange rate, the airport, and a growing awareness of the Canadian Rockies among U.S. travelers could meaningfully accelerate the market in the coming years.

Note: for detailed statistics and occupancy by 1/2/3 or 4BR units just reach out! Hydeaway Stay is always happy to connect.

Thinking about investing in Canmore?

At Hydeaway Stay, we don't just manage properties — we know this market from the inside. We can walk you through real numbers on real properties, share what we're seeing on the ground, and yes — tell you where we're personally buying ourselves.

👉 Get in touch with our team — we love talking about this stuff.

Data sources: Pricelabs, Hydeaway Stay data, realtor.ca, AirROI (Dec 2024–Nov 2025), Airbtics (2025), Canmore Banff Real Estate (2025), Zolo.ca (2025), local MLS data. All CAD figures unless otherwise noted. This blog is for informational purposes and does not constitute investment advice. Speak with a qualified advisor before making investment decisions.