National pipeline expands
Canada had 345 hotel projects containing 47,874 rooms in its construction pipeline at the end of the second quarter of 2026, according to Lodging Econometrics’ quarterly industry report. Compared with the same period in 2025, the number of projects increased by 4%, while the planned room count rose by 7%.
More than half of the national pipeline has not yet reached the construction stage. The early-planning category included 178 projects and 25,422 rooms, representing 52% of all projects in the pipeline. That category grew by 8% in project count, and 12% in room count from a year earlier.
Another 103 projects, covering 13,902 rooms, were scheduled to begin construction within the next 12 months. This represented year-over-year increases of 3% in projects and 7% in rooms. There were 64 projects with 8,550 rooms under construction at the end of the quarter. During the quarter, construction began on nine projects containing 1,246 rooms.
Upper midscale hotels account for the largest share
Upper midscale hotels represented the largest segment of Canada’s pipeline by project count, with 140 projects and 14,298 rooms. The category accounted for 41% of all projects and recorded year-over-year growth of 11% in projects and 8% in rooms.
The upscale segment followed with 60 projects and 7,955 rooms. The midscale category had 42 projects and 3,688 rooms, an increase of 8% in projects and 6% in rooms compared with the second quarter of 2025.
Combined, the upper midscale, upscale and midscale categories included 242 projects and 25,941 rooms. They represented 70% of the national pipeline by project count. The upper upscale segment contained 27 projects and 6,446 rooms, while the luxury category had 8 projects totaling 3,360 rooms.
Ontario and British Columbia lead provincial activity
Ontario remained the main location for planned hotel development, with 190 projects and 27,627 rooms. The province accounted for 55% of all projects in Canada’s pipeline.
British Columbia had 77 projects and 11,868 rooms, representing 22% of the national project total. Its pipeline increased by 13% in projects and 24% in rooms from a year earlier.
Quebec followed with 29 projects and 3,319 rooms. Its project count rose by 32%, while its room count increased by 44% year over year. Ontario, British Columbia and Quebec together accounted for 296 projects and 42,814 rooms, or 86% of Canada’s pipeline by project count.
Toronto leads among Canadian cities
Toronto had 71 projects and 11,495 rooms at the end of the second quarter. The city represented 21% of all projects in the country’s hotel construction pipeline.
Niagara Falls had 41 projects and 8,054 rooms. Its project count increased by 24% from a year earlier, while the number of rooms rose by 47%. Vancouver reported 24 projects and 6,890 rooms, with year-over-year increases of 26% in projects and 32% in rooms.
Together, Toronto, Niagara Falls and Vancouver had 136 projects containing 26,439 rooms. These cities accounted for 39% of the national pipeline by project count.
New announcements double from previous year
Developers announced 26 new hotel projects with 3,594 rooms during the second quarter. According to Lodging Econometrics, the number of new project announcements was twice the level recorded during the comparable period in 2025.
Separately, Canada’s renovation and conversion pipeline remained stable at 110 projects and 15,402 rooms. Renovations and conversions are tracked apart from the new construction pipeline because they involve existing properties or the reuse of buildings for hotel operations.
Hotel openings forecast through 2028
Sixteen hotels with 1,718 rooms opened in Canada during the first half of 2026. Another 22 hotels containing 2,653 rooms were scheduled to open before the end of the year.
Lodging Econometrics forecasts that 38 hotels with 4,371 rooms will open during 2026, producing a 1.2% increase in the country’s hotel room supply.
The firm expects 41 hotels and 4,583 rooms to open in 2027, representing a 1.2% increase in supply. For 2028, it forecasts 46 hotel openings totaling 5,281 rooms, representing a 1.4% increase in supply.
The number of projects in early planning indicates that development activity could continue beyond the forecast period. However, projects at that stage may be delayed, revised or canceled before construction begins.
