The Q2 2025 Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) reveals that there are 333 projects/44,764 rooms in the country’s total pipeline at the close of the quarter, representing a 3% increase in projects and an 11% increase in rooms year-over-year (YOY).
At Q2, hotel projects under construction in Canada stand at 68 projects/9,038 rooms, each respectively accounting for 20% of the total pipeline. Projects scheduled to start construction in the next 12 months show YOY growth at Q2, standing at 100 projects/12,955 rooms for a 25% YOY increase by projects and a 40% YOY increase by rooms. Accounting for 50% of the projects in Canada’s total pipeline at Q2, projects in early planning stand at 165 projects for a 2% YOY increase and a new record-high 22,771 rooms for an 11% YOY increase by rooms.
Chain scale segments with the largest number of projects in Canada’s total pipeline at the Q2 close include the upper midscale chain scale with 126 projects/13,203 rooms, the upscale chain scale with 66 projects/9,258 rooms, demonstrating growth of 14% YOY by projects and 17% YOY by rooms. The midscale segment maintains its position with 39 projects/3,491 rooms.
Provinces with the most projects in the pipeline in Canada at Q2 are dominated by Ontario, which accounts for 59% of the projects in the total pipeline, and stands at 197 projects/27,776 rooms, up 4% YOY by projects and 15% YOY by rooms. British Columbia stands at a record-high 68 projects with 9,607 rooms, showing growth of 15% YOY by projects and 14% YOY by rooms. Quebec follows with 22 projects/2,310 rooms. Together, these three provinces account for 86% of the projects and 89% of the rooms in Canada’s hotel construction pipeline at Q2.
The top cities in Canada at the Q2 close are led by Toronto with record-high totals of 74 projects and 12,219 rooms and showing growth of 9% YOY by projects and 28% YOY by rooms. At the Q2 close, Vancouver records a record-high project total of 33 projects/5,473 rooms, representing remarkable growth of 57% by projects and 34% by rooms YOY. Niagara Falls maintains its position at Q2, standing at 19 projects/5,236 rooms.
At the close of the second quarter, new project announcements (NPAs) in Canada reached 13 projects/1,896 rooms, while construction starts stand at 6 projects/577 rooms. Combined hotel renovations and brand conversions in Canada achieved record-high project and rooms totals of 124 projects/16,448 rooms, demonstrating growth of 10% by projects and 20% by rooms YOY.
Twenty new hotels with 2,346 rooms opened in Canada during the first half of 2025, with an additional 25 new hotels/2,969 rooms scheduled to open before year-end. LE’s total new hotel openings forecast for 2025 anticipates 45 new hotels and 5,315 rooms will open by year-end, representing a 1.4% supply growth rate.
In 2026, LE analysts forecast 42 new hotels/5,375 rooms to open, for a 1.4% supply growth rate. LE’s newly released 2027 new hotel openings forecast for Canada anticipates 52 new hotels/5,744 rooms will open, for a 1.5% supply growth rate increase.