Canada’s hotel construction pipeline has reached unprecedented levels, with the total number of projects soaring to 341, according to the latest Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE). This translates into 47,426 rooms, marking a significant 20% increase in room growth year-over-year (YOY).
Breakdown of the Pipeline
Currently, the number of projects under construction stands at 79, with 11,418 rooms. This represents a robust 13% project growth and a 25% surge in rooms year over year. Projects slated to commence construction within the next twelve months have significantly risen to 96, with a capacity of 13,849 rooms, up 20% by projects and 44% by rooms year over year. Additionally, early planning stage projects have reached a record-setting total of 166, with 22,159 rooms.
Upper midscale projects comprise the largest percentage of the pipeline, with 132 projects, representing 39% of the total projects. The upscale segment exhibits strong growth with 66 projects, reflecting a year-over-year increase of 14% in projects and 34% in rooms.
Regional and City-Level Overview
Ontario leads the country’s construction pipeline with 203 projects, accounting for 60% of the total projects. British Columbia follows with 68 projects, and Quebec with 23 projects. These three provinces account for 86% of the projects and 89% of the rooms in the total pipeline.
Toronto has the highest number of construction projects, reaching a new all-time high of 71. Vancouver also set a new record with 33 projects, followed by Niagara Falls, which boasted a record-high of 20 projects.
Projected Openings
Five new hotels opened in Canada in the first quarter, adding 518 rooms to the country’s hotel industry. An additional 37 hotels, accounting for 4,506 rooms, are projected to open by the end of the year. According to LE’s forecast, 42 new hotels and 5,024 rooms will open in Canada in 2025, with the number of new hotel openings expected to continue rising through 2026.
