Colliers Releases 2026 Canadian Hotel Investment Report

The themes emerging across the country are clear: demand for quality assets remains deep, capital both from equity and debt is available, and investors are increasingly strategic in where—and how—they deploy it.

Capital Remains Selectively on the Sidelines

Liquidity across hotel equity markets remains ample entering 2026, though capital is increasingly patient and selective. Investors are prioritizing assets with clear operating upside, durable cash flow, and realistic paths to value creation. Bid ask spreads are narrowing, but disciplined pricing remains a hallmark of the current cycle. 

Quality Over Quantity

With limited new supply in many Canadian markets, investor focus continues to skew toward well located, high quality assets, particularly those benefiting from brand affiliation, recent capital investment, or repositioning opportunities. Secondary and tertiary markets with proven demand drivers are gaining further traction as core markets remain tightly held. 

Operating Performance as the Primary Value Driver

As cap rate compression moderates, asset-level  operating fundamentals are once again front and centre. Revenue growth—particularly through rate  optimization—alongside cost containment and margin  management will be key differentiators in asset  performance. Investors are underwriting operational  efficiencies as much as location.

Debt Markets: More Options, More Structure

Liquidity continues to improve, with increased competition among lenders and greater creativity in deal structures.

While leverage remains prudent, flexible financing— including structured debt and seller financing—will play a growing role in facilitating transactions, particularly for repositioning and portfolio strategies

Regional Rotation Continues

Interprovincial capital is expected to remain active,

with Alberta, Atlantic Canada, and select resort markets attracting incremental attention due to favourable entry points, diversified economic drivers, and strong leisure and transient demand. Major urban centres remain highly sought after, though opportunities are often limited by tightly held ownership. 

Global Capital: Selective, Not Broad-Based

Domestic capital continues to anchor Canadian hotel investment activity, driving the large majority of transaction volume. Global capital remains highly selective, engaging primarily in large-scale portfolios, marquee single-asset transactions, or situations with strategic or platform- building rationale. While favourable currency dynamics and Canada’s relative stability remain supportive, international participation is targeted rather than widespread.

Download the report for an in-depth review of 2025 transaction trends and the outlook for 2026.