The latest Hotel Construction Pipeline Trend Report for Canada from Lodging Econometrics (LE) shows the country’s total pipeline has reached new all-time-high project and room totals at Q1 2025, with 341 projects accounting for 47,426 rooms. These record-breaking figures represent a robust 9% increase in projects and an impressive 20% increase in rooms year-over-year (YOY).
Currently, projects under construction stand at 79 projects/11,418 rooms, showing solid growth of 13% by projects and 25% by rooms YOY. Projects scheduled to start construction sometime within the next twelve months increased substantially at Q1 to 96 projects/13,849 rooms, up 20% by projects and 44% by rooms YOY, signaling accelerated development timelines. Meanwhile, early planning stage projects have reached 166 projects with a record-setting 22,159 rooms, continuing their upward trajectory with increases of 1% by projects and 6% by rooms compared to Q1 2024.
By chain scale, upper midscale projects account for the largest percentage of the pipeline with 132 projects/13,870 rooms, representing 39% of the total projects. The upscale segment showed strong growth with 66 projects/10,842 rooms, up 14% and 34% YOY.
At the Q1 close, hotel construction projects in the province of Ontario continue to lead Canada’s construction pipeline with 203 projects/28,822 rooms, up 9% and 21% YOY, representing 60% of the projects and 61% of the rooms in the total pipeline. Following Ontario, the largest number of projects and rooms in the pipeline at Q1 is British Columbia with 68 projects/11,077 rooms, up an impressive 21% and 35% YOY, then Quebec with 23 projects/2,540 rooms. These three provinces account for 86% of the projects and 89% of the rooms in the total pipeline in Canada at Q1.
Focusing on cities, Toronto maintains its lead with the highest number of construction projects in the pipeline reaching a new all-time high with 71 projects totaling 11,781 rooms, up 6% and 26% YOY. Vancouver also reached a new all-time high, with 33 projects/7,004 rooms, up a remarkable 57% and 72% YOY, followed by Niagara Falls with a record-high 20 projects/5,652 rooms, up 67% and 39% YOY.
Five new hotels with 518 rooms opened in Canada during the first quarter. An additional 37 new hotels, accounting for 4,506 rooms, are scheduled to open by year-end. According to LE analysts, 42 new hotels and 5,024 rooms will open in Canada in 2025. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2026 with 43 new hotel openings with 5,479 rooms.