According to the Q4 2025 Canada Construction Pipeline Trend Report by Lodging Econometrics (LE), Canada’s total construction pipeline stands at 332 projects/45,429 rooms, achieving a 5% increase in rooms year-over-year (YOY).
At year-end 2025, projects under construction in Canada stand at 70 projects/9,189 rooms. Projects scheduled to start construction anytime in the next 12 months total 90 projects/12,614 rooms, reflecting growth of 3% by projects and 8% by rooms YOY. 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 YOY. Construction starts demonstrated remarkable strength, increasing 60% YOY and reaching 16 projects/2,254 rooms, the highest number of starts seen since Q4 2023.
By chain scale, upper midscale hotels continue to lead with 130 projects/13,548 rooms, representing 39% of the total projects and 30% of rooms in the pipeline. The luxury and upper upscale segments achieved record-high project and room totals at the end of Q4 2025. The midscale segment showed robust growth of 11% by projects and 10% by rooms YOY, totaling 42 projects/3,754 rooms, also a record-high room count for this chain scale.
Ontario continues to lead provincial development with 189 projects/27,039 rooms, representing 57% of the country’s total pipeline projects. British Columbia demonstrated impressive growth at the Q4 close, reaching 69 projects/10,171 rooms, up 17% by projects and 20% by rooms YOY, and accounting for 21% of the country’s total pipeline projects. Quebec also showed strong performance with 27 projects/3,106 rooms, up 13% by projects and 14% by rooms YOY.
The top cities in Canada’s construction pipeline are led by Toronto with 74 projects/12,170 rooms, representing 22% of the country’s total pipeline projects, with growth of 21% by rooms YOY. Vancouver achieved exceptional growth, reaching 34 projects/5,966 rooms, up 36% by both projects and rooms YOY. Niagara Falls follows with 20 projects/5,420 rooms.
New project announcements (NPAs) achieved a record-high rooms total at the Q4 2025 close with 29 projects/5,783 rooms, up 14% by rooms YOY. Combined hotel renovations and brand conversions totaled 119 projects/16,432 rooms, reflecting a 10% increase in rooms YOY.
In 2025, Canada saw 40 hotels/4,744 rooms open, representing a 1.3% supply growth rate. LE is forecasting 40 new hotels/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.