Canada pipeline at all-time high

CANADA – Canda’s pipeline has reached an all-time-high project and room totals at Q1 2025, with 341 projects accounting for 47,426 rooms, according to Lodging Econometrics data. These figures represent a 9% increase in projects and a 20% increase in rooms year-over-year (YOY).

Projects under construction stood at 79 projects/11,418 rooms, showing 13% growth by projects and 25% by rooms YOY. Projects scheduled to start construction within the next 12 months increased substantially to 96 projects/13,849 rooms, up 20% by projects and 44% by rooms YOY. Meanwhile, early planning stage projects have reached 166 projects with a record-setting 22,159 rooms, an increase of 1% by projects and 6% by rooms compared to Q1 2024.

Five new hotels with 518 rooms opened in Canada during the first quarter. An additional 37 new hotels, accounting for 4,506 rooms, are scheduled to open by year-end. According to LE, 42 new hotels and 5,024 rooms will open in Canada in 2025. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2026 with 43 new hotel openings with 5,479 rooms.

By chain scale, upper midscale projects account for the largest percentage of the pipeline with 132 projects/13,870 rooms, representing 39% of the projects. The upscale segment showed strong growth with 66 projects/10,842 rooms, up 14% and 34% YOY.

At the Q1 close, hotel construction projects in the province of Ontario continue to lead Canada's construction pipeline with 203 projects/28,822 rooms, up 9% and 21% YOY, representing 60% of the projects and 61% of the rooms in the total pipeline. Following Ontario, the largest number of projects and rooms in the pipeline at Q1 is British Columbia with 68 projects/11,077 rooms, up 21% and 35% YOY.

Focusing on cities, Toronto maintains its lead with the highest number of construction projects in the pipeline reaching an all-time high with 71 projects totaling 11,781 rooms, up 6% and 26% YOY. Vancouver also reached an all-time high with 33 projects/7,004 rooms, up 57% and 72% YOY, followed by Niagara Falls with a record-high 20 projects/5,652 rooms, up 67% and 39% YOY.