Canada’s Hotel Construction Pipeline Expands with Record Growth in 2025 :: Hospitality Trends

Canada’s hotel construction pipeline reached 332 projects with 45,429 rooms at the end of 2025, marking notable year-over-year growth in both new construction starts and planned projects, with Ontario and British Columbia leading regional development and upper midscale hotels dominating the market.

According to the Q4 2025 Canada Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE), the country’s hotel construction sector continues to show growth. At the close of 2025, Canada’s total hotel construction pipeline included 332 projects, accounting for 45,429 rooms. This reflects a 5% year-over-year increase in room count, indicating ongoing momentum in the sector.

Current Construction and Planning Activity

At year-end 2025, 70 projects with 9,189 rooms were under active construction. Projects scheduled to begin within the next 12 months totaled 90 projects and 12,614 rooms, representing a 3% increase in projects and an 8% increase in rooms compared to the previous year. Early planning activity reached a record high, with 172 projects and 23,626 rooms in the pipeline, up 11% in room count and 1% in the number of projects year-over-year.

Construction starts showed significant growth, up 60% from the previous year, with 16 projects and 2,254 rooms breaking ground. This marks the highest number of construction starts since Q4 2023.

Performance by Hotel Chain Scale

Upper midscale hotels continue to represent the largest share of the pipeline, with 130 projects and 13,548 rooms. This segment accounts for 39% of the total projects and 30% of the rooms in the pipeline. The luxury and upper-upscale segments also reached record highs for both projects and rooms at the end of 2025.

The midscale segment demonstrated strong growth, with an 11% increase in projects and a 10% increase in rooms year over year. This segment reached 42 projects and 3,754 rooms, marking a record-high room count for midscale hotels.

Regional and City-Level Development

Ontario leads provincial hotel development, accounting for 189 projects and 27,039 rooms, which is 57% of the country’s total pipeline. British Columbia also reported significant growth, ending the year with 69 projects and 10,171 rooms, up 17% in projects and 20% in rooms year over year. This province now represents 21% of Canada’s total hotel pipeline. Quebec followed with 27 projects and 3,106 rooms, up 13% in projects and 14% in rooms from the previous year.

Among Canadian cities, Toronto leads with 74 projects and 12,170 rooms, accounting for 22% of the national pipeline and a 21% year-over-year increase in rooms. Vancouver reported 34 projects and 5,966 rooms, an increase of 36% in both categories. Niagara Falls is also a key market, with 20 projects and 5,420 rooms in development.

New Project Announcements, Renovations, and Openings

New project announcements reached a record high at the end of Q4 2025, with 29 projects and 5,783 rooms, a 14% year-over-year increase in rooms. Hotel renovations and brand conversions also grew, totaling 119 projects and 16,432 rooms, reflecting a 10% increase in rooms compared to the previous year.

In 2025, 40 hotels with 4,744 rooms opened in Canada, representing a 1.3% increase in hotel supply. The 2026 forecast anticipates the opening of 40 additional hotels with 4,944 rooms, maintaining a 1.3% growth rate. For 2027, projections indicate 49 new hotels will open, adding 5,501 rooms for a 1.5% increase in total hotel supply.