The latest Hotel Construction Pipeline Trend Report for Canada, provided by Lodging Econometrics (LE), indicates that as of the first quarter of 2026, there are 331 hotel projects comprising 45,401 rooms in various stages of planning and development across the country. This figure reflects ongoing momentum in the hospitality sector, with developers showing sustained interest in new hotel projects.
A notable increase was observed in the early planning stage, which reached an all-time high with 176 projects totaling 24,949 rooms. Compared to the previous year, this represents a 6% increase in the number of projects and a 13% rise in the number of rooms. This early-stage growth suggests that developers remain confident in the market’s potential and points to a robust outlook for future hotel supply in Canada.
Currently, 64 projects with 8,125 rooms are under construction, while 91 projects with 12,327 rooms are scheduled to begin construction within the next 12 months.
Chain Scale Breakdown
Analysis at the chain scale shows that upper-midscale hotel projects continue to dominate the pipeline. At the end of Q1 2026, this segment reached record highs with 137 projects and 14,173 rooms, representing 41% of all projects in the pipeline. This marks a 5% year-over-year increase in project count.
The midscale segment also achieved new records, with 44 projects and 3,827 rooms, up 13% in project count and 9% in room count compared to the previous year. Additionally, the upper upscale and luxury segments both reported record-high project and room counts at the close of Q1.
Provincial and City-Level Development
Ontario continues to lead the country in hotel construction activity, with 190 projects and 27,567 rooms. This represents 57% of all projects and 61% of all rooms in the national pipeline. British Columbia follows with 68 projects and 9,938 rooms. Quebec is third, with 26 projects and 2,971 rooms, reflecting year-over-year increases of 13% in project count and 17% in room count. Collectively, Ontario, British Columbia, and Quebec account for 86% of all projects and 89% of all rooms in the Canadian pipeline.
At the city level, Toronto remains the leading market, with 71 projects and 11,420 rooms, representing 21% of all projects in the country. Vancouver follows with 33 projects and 5,781 rooms. Niagara Falls has seen notable growth, reaching a record high of 23 projects and 6,820 rooms, up 15% and 21% year-over-year, respectively. Together, these three cities account for 38% of projects and 53% of rooms in the national pipeline.
Hotel Openings and Future Outlook
During the first quarter of 2026, seven new hotels with a total of 917 rooms opened in Canada. An additional 32 hotels, comprising 3,713 rooms, are scheduled to open by the end of the year. LE analysts project that 39 new hotels and 4,630 rooms will open in 2026, representing a 1.2% supply growth rate.
Looking ahead, the forecast anticipates continued increases in new hotel openings through the end of 2027. A total of 51 new hotels with 5,666 rooms are expected to open that year, representing a 1.5% growth rate in new hotel supply.
Conclusion
The data from Q1 2026 show that Canada’s hotel construction pipeline is experiencing significant growth, particularly in the early planning stages and in key provinces and cities. The ongoing expansion in the upper midscale and midscale segments, along with consistent increases in new hotel openings, suggests a positive outlook for the Canadian hospitality industry in the coming years.
