Canada pipeline shows continued momentum

INTERNATIONAL REPORT — Canada’s hotel construction pipeline is up 5% year-over-year at the end of 2025 and is showing continued momentum for the next few years, according to the latest data from Lodging Econometrics.

Canada's total construction pipeline stands at 332 projects and 45,429 rooms, up 5% YOY. At the end of 2025, projects under construction in Canada totaled 70 and 9,189 rooms. Projects scheduled to start construction anytime in the next 12 months total 90 projects and 12,614 rooms, reflecting a growth of 3% by projects and 8% by rooms YOY, while projects in early planning reached a record-high rooms total of 23,626 rooms across 172 projects, up 11% by rooms and 1% by projects.

Construction starts demonstrated strength, increasing 60% YOY to 16 projects/2,254 rooms, the highest number of starts since Q4 2023.

By chain scale, upper-midscale hotels continue to lead with 130 projects and 13,548 rooms, representing 39% of the total projects and 30% of the rooms in the pipeline. The luxury and upper upscale segments achieved record-high project and room totals at the end of Q4. The midscale segment has also shown robust growth of 11% by projects and 10% by rooms YOY, totaling 42 projects and 3,754 rooms, a record-high number of rooms.

Ontario continues to lead provincial development, with 189 projects and 27,039 rooms, representing 57% of the country's total pipeline. British Columbia also demonstrated impressive growth, reaching 69 projects and 10,171 rooms, up 17% by projects and 20% by rooms YOY.

The top cities in Canada's construction pipeline are led by Toronto, with 74 projects and 12,170 rooms, representing 22% of the country's total pipeline and a 21% YOY growth in rooms. Vancouver was second with 34 projects and 5,966 rooms, up 36% by both projects and rooms YOY. Niagara Falls was third with 20 projects and 5,420 rooms.

New project announcements achieved a record-high total of 29 projects and 5,783 rooms at the Q4 close, up 14% YOY. Combined hotel renovations and brand conversions totaled 119 projects and 16,432 rooms, reflecting a 10% YOY increase in rooms.

In 2025, Canada saw 40 hotels open, adding 4,744 rooms, for a 1.3% supply growth rate. LE is forecasting 40 new hotels and 4,944 rooms to open in 2026, representing another 1.3% growth rate. The forecast for 2027 anticipates 49 new hotels opening, bringing 5,501 additional rooms to Canada's room supply, for a 1.5% growth rate.