According to the Q4 2024 Canada Construction Pipeline Trend Report by Lodging Econometrics (LE), Canada’s total construction pipeline has reached record-breaking counts of 333 projects/43,413 rooms, showing robust growth of 13% for both projects and rooms year-over-year (YOY).
At year-end 2024, projects under construction stand at 76 projects/10,442 rooms, up 15% by projects and 16% by rooms YOY. Projects scheduled to start construction in the next 12 months total 87 projects/11,698 rooms, reflecting a modest 2% increase in projects but a substantial 19% increase in rooms YOY. Projects in early planning also experienced significant growth at Q4 with a 19% increase by projects and 9% by rooms YOY, to close the quarter with 170 projects and a record-high 21,273 rooms.
By chain scale, upper midscale hotels dominate with 132 projects/14,039 rooms, representing 40% of the total projects and 32% of rooms in the pipeline. The upper upscale segment follows with 62 projects/8,570 rooms, while upscale properties have achieved record highs of 25 projects/5,591 rooms.
Ontario continues to lead by far in provincial development at the Q4 close, achieving historic highs with 200 projects/26,976 rooms, showing impressive growth of 16% by projects and 17% by rooms YOY and accounting for 60% of the country’s total pipeline. British Columbia follows with 59 projects/8,480 rooms, then Quebec with 24 projects/2,714 rooms. Manitoba has reached record highs of 14 projects/1,432 rooms.
The top cities in Canada’s construction pipeline are led by Toronto, which has achieved new all-time highs with 70 projects/10,053 rooms, representing 21% of the country’s total pipeline projects. Vancouver follows with record counts of 25 projects/4,375 rooms, then Niagara Falls with historic highs of 20 projects/5,652 rooms, Montreal with 18 projects/2,199 rooms, and Ottawa-Hull with a record-high 14 projects totaling 1,991 rooms.
Renovation and brand conversion activity reached new highs as well. Conversions achieved record counts of 83 projects/8,218 rooms, while combined hotel renovations and brand conversions hit an historic high of 120 projects totaling 14,974 rooms, up 10% by projects and 18% by rooms YOY. New project announcements (NPAs) remain strong, with 36 projects/5,057 rooms announced in Q4 2024.
Through Q4 2024, Canada opened 15 new hotels with 1,478 rooms. LE is forecasting 43 new hotels/5,321 rooms to open in 2025, representing continued growth in supply. The forecast for 2026 anticipates another 43 new hotels, bringing 6,547 additional rooms to Canada’s room supply.