PORTSMOUTH NH The Q2 2025 Canada Hotel Construction Pipeline Trend Report Lodging Econometrics’ (LE) report reveals that the total pipeline of projects in the country at the end of the third quarter was 333/44,764 which represents a 11% growth in rooms and a 3% rise in projects.
In Q2, there were 68 hotel projects in Canada, which accounted for 9,038 rooms. Each project accounted for 20% of total pipeline. In Q2, 100 projects/12.955 room projects are expected to start construction over the next 12 month period, representing a YOY gain of 25% by projects and 40% by rooms. Projects in early planning accounted for half of Canada’s total pipeline. They numbered 165, representing a 2% year-over-year increase.
At the close of Q2, the chain scale segments with the highest number of projects were the upper midscale scale (126 projects/13.203 rooms) and the upscale scale (66 projects/9.258 rooms). These segments showed growth by 14% year-over-year by projects as well as 17% by room numbers. The midscale segment retains its top position with 39 project/3,491 room.
Ontario has the most projects on the way in Canada. The province is responsible for 59% of all projects. British Columbia is at a new record of 68 projects with a total of 9,607 rooms. The growth in projects was 15% and rooms were 14%. Quebec comes in second with 22 projects/2310 room. In Q2, these three provinces accounted for 86% of all projects and 89% rooms in Canada’s pipeline of hotel construction.
Toronto, the largest city in Canada by Q2’s end, has 74 record-high projects and 12,219 total rooms. It shows a growth YOY of 9% for projects and 28% for rooms. Vancouver’s record project total at the end of Q2 is 33 projects/5.473 rooms. This represents an impressive growth of 57% YOY by projects, and 34% YOY by rooms. Niagara Falls is still in the top spot at Q2, with 19 projects/5,236 room.
In Canada, at the end the second quarter of 2016, new project announcements (NPAs), stood at 13 projects/1.896 rooms. Meanwhile, construction started on 6 projects/577. Hotel renovations combined with brand conversions achieved a total of 124 project/16,448 room, which is a record high.
The first half of the year 2025 saw the opening of twenty new hotels in Canada, totaling 2,346 rooms. Another 25 new hotels, or 2,969 rooms, are expected to open before the end of this year. LE’s 2025 forecast of new hotel openings predicts that 45 new hotels with 5,315 room will be open by the end of the year, representing an increase in supply of 1.4%.
LE analysts predict that 42 new hotel rooms will be opened in 2026. That’s a 1.4% increase in supply. The newly released LE 2027 forecast for new hotel openings for Canada predicts 52 new properties/5,744 bedrooms, representing a growth of 1.5% in the supply.
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Lodging Econometrics, a global leader in hotel intelligence and contact data for decision-makers, has provided this information to the industry for over 25 year. LE creates customized business development database systems for hotel franchisors who are looking to accelerate brand growth. Hotel ownership and management firms that want to expand real estate portfolios. And lodging industry vendors looking to increase their sales. Contact us to learn more about our Business Development Programs: +1-603.431.8740. [email protected].
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