The latest Hotel Construction Pipeline Trend Report for Canada from Lodging Econometrics (LE) reveals, at Q1 2026, there are 331 projects/45,401 rooms in the total pipeline.
Projects in the early planning stage reached a new all-time high room count in Canada with 176 projects/24,949 rooms, up 6% and 13% year-over-year (YOY), respectively. This record-breaking early planning total demonstrates sustained developer confidence and signals robust future growth for Canada’s hotel industry. Currently, there are 64 projects/8,125 rooms under construction in Canada, while 91 projects/12,327 rooms are scheduled to start construction in the next twelve months.
By chain scale, upper midscale projects continue to lead the pipeline with record-high totals of 137 projects/14,173 rooms, representing 41% of all projects and showing impressive growth of 5% by projects YOY. The midscale segment also reached new all-time highs with 44 projects/3,827 rooms, up 13% and 9% YOY, respectively. Additionally, both the upper upscale and luxury chain scales achieved record-high project and room counts at Q1.
At the Q1 close, hotel construction projects in the province of Ontario continue to lead Canada’s construction pipeline with 190 projects/27,567 rooms, representing 57% of the projects and 61% of the rooms in the total pipeline. Following Ontario is British Columbia with 68 projects/9,938 rooms, then Quebec with 26 projects/2,971 rooms, up 13% and 17% YOY, respectively. These three provinces account for 86% of the projects and 89% of the rooms in the total pipeline in Canada at Q1.
In terms of cities, Toronto maintains its position as the market leader with 71 projects/11,420 rooms in the pipeline, representing 21% of all projects in Canada. Vancouver follows with 33 projects/5,781 rooms, then Niagara Falls with a record-high 23 projects/6,820 rooms, up an impressive 15% and 21% YOY, respectively. These three cities combined account for 38% of the projects and 53% of the rooms in Canada’s total pipeline.
Seven new hotels with 917 rooms opened in Canada during the first quarter. An additional 32 new hotels, accounting for 3,713 rooms, are scheduled to open by year-end. According to LE analysts, a total of 39 new hotels and 4,630 rooms will open in 2026, for a 1.2% growth rate. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2027 with a total of 51 forecasted new hotel openings with 5,666 rooms, marking a 1.5% new supply growth rate increase.