An Overview of Canada’s Booming Hotel Construction Pipeline

PORTSMOUTH, NH – The Canadian hotel construction sector is experiencing notable growth as illustrated in Lodging Econometrics’ latest report. By the end of the third quarter of 2025, the total hotel pipeline in Canada reached an impressive 333 projects, translating to 44,659 rooms. This represents a year-over-year (YOY) growth of 2% in the number of projects and a striking 9% increase in the number of rooms, highlighting the robust demand for accommodations across the country.

Current Construction Status

As of Q3 2025, 66 projects are currently under construction, contributing 8,398 rooms to the pipeline. Interestingly, projects scheduled to break ground within the next 12 months demonstrate strong momentum. With 103 projects and 13,969 rooms set to commence, this sector is experiencing a remarkable 49% surge in projects and a 43% increase in rooms YOY. Furthermore, the early planning phase contains 164 projects with 22,292 rooms, also displaying a noteworthy 9% room growth YOY. In the third quarter alone, there were 15 new project announcements adding 2,005 rooms, underlining the increasing pace of development.

Chain Scale Breakdown

Breaking down the pipeline by chain scale, upper midscale hotels continue to dominate, accounting for 128 projects and 13,700 rooms. This category represents 38% of all projects and 30% of total rooms. Following this, upscale hotels feature 63 projects with 8,418 rooms, reflecting 11% project growth and 7% room growth YOY. Midscale hotels account for 42 projects and 3,699 rooms. Combined, these three chain scales illustrate that upper midscale, upscale, and midscale segments account for 70% of projects and 56% of rooms in the country’s total pipeline.

Renovations and Brand Conversions

Another interesting aspect is the growing activity in renovations and brand conversions, which have increased by 4% in projects and a notable 18% in the number of rooms YOY. This brings the total to 118 projects and 16,088 rooms, suggesting a revitalization strategy among existing hotels to adapt to evolving market demands.

Provincial Insights

Ontario remains the leading province for hotel construction, with 58% of total projects and 61% of all rooms nationwide—194 projects and 27,083 rooms—indicating a 10% YOY growth. Following Ontario, British Columbia has reached a record high of 70 projects and 9,883 rooms, exhibiting impressive growth of 17% in both projects and rooms. Quebec comprises 26 projects and 2,959 rooms. Collectively, these top three provinces account for an astonishing 87% of projects and 90% of rooms in Canada’s total pipeline, underscoring regional disparities in development.

City-wise Breakdown

When focusing on specific cities, Toronto takes the lead with 71 projects and 11,533 rooms, representing 21% of all projects and 26% of all rooms in Canada’s overall construction pipeline. Vancouver follows with 36 projects and 5,944 rooms, marking a significant growth of 64% in projects and 52% in rooms YOY. Rounding out the top three is Niagara Falls, which features 19 projects and 5,238 rooms.

Future Projections

Looking forward, the first three quarters of 2025 witnessed the opening of 29 new hotels, adding 3,594 rooms to Canada’s operational hotel supply. Lodging Econometrics forecasts that an additional 12 hotels comprising 1,235 rooms will debut by the end of 2025. This momentum is expected to bring the total year-end opening count to 41 hotels with 4,829 rooms, representing a modest 1.3% increase in supply. Further projections suggest that 2026 will see 42 hotels and 5,356 rooms enter the market, a 1.4% increase, followed by 53 hotels and 5,865 rooms in 2027, equating to a 1.5% increase in existing supply.

Conclusion

The Canadian hotel construction pipeline is on the rise, reflecting a dynamic and responsive real estate landscape. As demand for accommodations continues to ascend, investors and developers are taking note, fueling growth in various sectors, provinces, and cities. With ongoing renovations, new developments, and an optimistic forecast, the hotel industry in Canada is set to thrive in the coming years.

About Lodging Econometrics (LE)

For over 25 years, Lodging Econometrics has been a leading provider of hotel industry intelligence. Through custom business development database programs, LE facilitates growth for hotel franchise companies, ownership and management firms, and vendors. For inquiries on development programs, contact them at +1 603.431.8740, ext 0025 or email info@lodgingeconometrics.com.

For further information, visit Lodging Econometrics’ website.