The Q2 Canada Hotel Construction Pipeline report from Lodging Econometrics (LE) reveals that there are 333 projects/44,764 rooms in the country’s total pipeline at the close of the quarter, representing a 3% increase in projects and an 11% increase in rooms year-over-year (YOY).
In Q2, there were 68 hotel projects in Canada, which accounted for 9,038 rooms. Each project accounted for 20% of total pipeline. The projects that are scheduled to begin construction within the next year have shown a YOY rise at Q2, with 100 projects/12.955 rooms. This represents a 25% increase YOY by projects, and a 40% increase YOY by rooms. Early planning projects accounted for 50% of Canada’s pipeline in Q2, with 165 projects, a 2% increase YOY and a record 22,771 rooms.
Chain scale segments with the largest number of projects in Canada’s total pipeline at the Q2 close include the upper-midscale segment with 126 projects/13,203 rooms and the upscale chain scale with 66 projects/9,258 rooms, demonstrating growth of 14% YOY by projects and 17% YOY by rooms. Midscale segment remains at the top with 39 projects/3 491 rooms.
Ontario has the largest pipeline of projects at Canada in Q2. It accounts for 59% and there are 197 projects with 27,776 rooms. British Columbia has 68 projects, with 9,607 bedrooms. This is a record number of projects. 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 is the top city in Canada as of Q2’s close, with a record total of 74 projects. This represents a growth of 28% by rooms and 9% by projects. Vancouver set a new record with 33 projects/5.473 rooms. The growth was 57% for projects and 34% for rooms. Niagara Falls continues to hold its Q2 position, with 19 projects/5.236 rooms.
The number of new projects announced in Canada at the end of the second quarter was 13 projects/1 896 rooms. Construction starts were 6 projects/577 room. Hotel renovations and conversions combined reached a record total of 124 projects and 16,448 rooms. This represents a growth of 10% for projects and 20% for rooms year-on-year.
The first half of the year 2025 saw the opening of twenty new hotels in Canada, totaling 2,346 rooms. Another 25 new hotels/2 969 rooms will open before year end. LE’s total new hotel openings forecast for 2025 anticipates 45 new hotels and 5,315 rooms will open by year-end, representing a 1.4% supply growth rate.
Analysts at LE predict 42 new hotels and 5,375 rooms will open in 2026. This represents a growth of 1.4% for the supply. LE’s newly released 2027 new hotel openings forecast for Canada anticipates 52 new hotels/5,744 rooms will open, for a 1.5% supply growth rate increase.
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