Colliers Q4 2025 Canadian Hotel Investment Report

Colliers estimates more than $2.2 billion of hotel transactions nationally in 2025, representing a 11% year-over-year increase with strong pricing across all segments, from limited-service to full-service assets.

Highlights:

Eastern Canada Leads Activity: Approximately 75% of national sale volume took place in Eastern Canada, led by Ontario (54%), followed by Quebec (12%) and the Atlantic provinces (7%). Western Canada sale volume declined 20% year-over-year, driven by a slowdown in high-water-mark transactions in Alberta, though the province remains a leading destination for hotel investment capital.

Major Markets Drive Volume: Large single-asset transactions lifted trading volume in Canada’s largest metro areas (+1 million population) by 30% year-over-year, pushing total volume above $1.4 billion. Portfolio investment opportunities remained limited in scale.

Record Pricing: Average pricing reached a record $219,000 per key, driven by significant activity in major markets. All service segments recorded year-over-year pricing gains, including double-digit growth for limited-service hotels.

Fluid Mid-Market Trading: Investors continued to place significant capital in secondary/tertiary markets which accounted for nearly 70% of the hotels sold in 2025, reflecting steady investor demand beyond gateway cities.

Download the latest INNvestment Canada Hotel Report for preliminary transaction highlights of 2025 in addition to a 2026 outlook for tourism and hotel performance by Laura Baxter, Economist at Tourism Economics.