The Q2 2026 Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that at the close of the quarter, there are a record-high 345 projects/47,874 rooms in the country’s total pipeline, representing a 4% increase in projects and a 7% increase in rooms year-over-year (YOY).
Projects in early planning reach a record-high of 178 projects/25,422 rooms at the Q2 close, up 8% by projects and 12% by rooms YOY, and now account for 52% of the total pipeline. Projects scheduled to start construction in the next 12 months stand at 103 projects/13,902 rooms, up 3% by projects and 7% by rooms YOY. Currently under construction are 64 projects/8,550 rooms. Construction starts during the quarter stand at 9 projects/1,246 rooms.
By chain scale, the largest number of projects in Canada’s total pipeline at the Q2 close include the upper midscale segment, which reaches a record-high of 140 projects/14,298 rooms, up 11% by projects and 8% by rooms YOY and accounting for 41% of the projects in the total pipeline. The upscale chain scale follows with 60 projects/7,955 rooms, and the midscale segment stands at 42 projects/3,688 rooms, up 8% by projects and 6% by rooms YOY. Together, these top three chain scales by project count represent 242 projects/25,941 rooms, accounting for 70% of the total pipeline. The upper upscale chain scale also reaches a record-high at Q2, closing the quarter with 27 projects/6,446 rooms, while the luxury chain scale reaches a record-high of 8 projects/3,360 rooms.
Provinces with the most projects in the pipeline in Canada at Q2 continue to be led by Ontario, which accounts for 55% of the projects in the total pipeline with 190 projects/27,627 rooms. British Columbia reaches a record-high of 77 projects/11,868 rooms, up 13% by projects and 24% by rooms YOY, accounting for 22% of the total pipeline projects. Quebec follows with 29 projects/3,319 rooms, up 32% by projects and 44% by rooms YOY. Together, these three provinces account for 296 projects/42,814 rooms, representing 86% of the total pipeline.
The top cities in Canada at the Q2 close are led by Toronto with 71 projects/11,495 rooms, claiming 21% of all the projects in Canada’s total construction pipeline. Vancouver reaches a record-high of 24 projects/6,890 rooms, up 26% by projects and 32% by rooms YOY, accounting for 7% of the total pipeline projects. Niagara Falls reaches a record-high of 41 projects/8,054 rooms, up 24% by projects and 47% by rooms YOY, representing 12% of the total pipeline. Together, these three cities account for 136 projects/26,439 rooms, representing 39% of the total pipeline.
New project announcements (NPAs) double YOY, at Q2, and reach 26 projects/3,594 rooms. The renovation and conversion pipeline remains steady and stands at 110 projects/15,402 rooms.
Sixteen new hotels with 1,718 rooms open in Canada during the first half of 2026, with an additional 22 new hotels/2,653 rooms scheduled to open before year-end. LE’s total new hotel openings forecast for 2026 predicts 38 new hotels and 4,371 rooms will open by year-end, representing a 1.2% supply growth rate.
In 2027, LE analysts forecast 41 new hotels/4,583 rooms to open, for a 1.2% supply growth rate. LE’s newly released 2028 New Hotel Openings Forecast for Canada anticipates 46 new hotels/5,281 rooms will open, for a 1.4% supply growth rate.