Canada’s hotel construction pipeline experiences a slight increase in Q2 2025, driven by growth in Ontario and Vancouver.
Overview of Canada’s Hotel Construction Pipeline
The Q2 2025 Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) shows that at the close of the second quarter, Canada’s hotel construction pipeline included 333 projects and 44,764 rooms, marking a 3% increase in projects and an 11% increase in rooms year-over-year (YOY).
Projects Under Construction and Future Plans
As of Q2, there were 68 hotel projects under construction in Canada, comprising 9,038 rooms. These projects represent 20% of the total pipeline. Projects scheduled to commence construction within the next 12 months showed significant growth, with 100 projects and 12,955 rooms, reflecting a 25% YOY increase in projects and a 40% YOY increase in rooms. The early planning stage accounted for 165 projects, marking a 2% YOY increase, and 22,771 rooms, achieving an 11% YOY increase in rooms.
Chain Scale Segments
The upper midscale chain scale segment led Canada’s total pipeline at the Q2 close, with 126 projects and 13,203 rooms. The upscale chain scale followed with 66 projects and 9,258 rooms, demonstrating a 14% YOY growth in projects and a 17% YOY increase in rooms. The midscale segment maintained its position with 39 projects and 3,491 rooms.
Regional Highlights
Ontario dominated the pipeline, accounting for 59% of the projects and totaling 197 projects and 27,776 rooms. This represents a 4% YOY increase in projects and a 15% YOY increase in rooms. British Columbia reached a record-high with 68 projects and 9,607 rooms, showing a 15% YOY growth in projects and a 14% YOY increase in rooms. Quebec followed with 22 projects and 2,310 rooms. Together, these three provinces accounted for 86% of the projects and 89% of the rooms in Canada’s hotel construction pipeline at Q2.
City-Specific Developments
Toronto led Canadian cities with record-high totals of 74 projects and 12,219 rooms, showing a 9% YOY growth in projects and a 28% YOY increase in rooms. Vancouver recorded a notable increase with 33 projects and 5,473 rooms, reflecting a 57% YOY growth in projects and a 34% YOY increase in rooms. Niagara Falls maintained its position with 19 projects and 5,236 rooms.
New Project Announcements and Renovations
At the close of Q2, new project announcements (NPAs) reached 13 projects and 1,896 rooms, while construction starts stood at 6 projects and 577 rooms. Combined hotel renovations and brand conversions in Canada achieved record-high totals of 124 projects and 16,448 rooms, demonstrating a 10% YOY growth in projects and a 20% YOY increase in rooms.
Forecast for New Hotel Openings
In the first half of 2025, 20 new hotels with 2,346 rooms opened in Canada, with an additional 25 new hotels and 2,969 rooms scheduled to open before year-end. LE’s forecast for 2025 anticipates 45 new hotels and 5,315 rooms, representing a 1.4% supply growth rate. For 2026, LE analysts predict 42 new hotels and 5,375 rooms to open, maintaining a 1.4% supply growth rate. The 2027 forecast anticipates 52 new hotels and 5,744 rooms, marking a 1.5% supply growth rate increase.
