The Q2 2025 Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics reveals that there are 333 projects/44,764 rooms in the country's total pipeline at the close of the quarter, representing a 3 percent increase in projects and an 11 percent increase in rooms year-over-year.
At Q2, hotel projects under construction in Canada stand at 68 projects/9,038 rooms, each respectively accounting for 20 percent of the total pipeline. Projects scheduled to start construction in the next 12 months show year-over-year growth at Q2, standing at 100 projects/12,955 rooms for a 25 percent year-over-year increase by projects and a 40 percent year-over-year increase by rooms. Accounting for 50 percent of the projects in Canada’s total pipeline at Q2, projects in early planning stand at 165 projects for a 2 percent year-over-year increase and a new record-high 22,771 rooms for an 11 percent year-over-year 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 percent year-over-year by projects and 17 percent year-over-year 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 percent of the projects in the total pipeline, and stands at 197 projects/27,776 rooms, up 4 percent year-over-year by projects and 15 percent year-over-year by rooms. British Columbia stands at a record-high 68 projects with 9,607 rooms, showing growth of 15 percent year-over-year by projects and 14 percent year-over-year by rooms. Quebec follows with 22 projects/2,310 rooms. Together, these three provinces account for 86 percent of the projects and 89 percent 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 percent year-over-year by projects and 28 percent year-over-year by rooms. At the Q2 close, Vancouver records a record-high project total of 33 projects/5,473 rooms, representing remarkable growth of 57 percent by projects and 34 percent by rooms year-over-year. Niagara Falls maintains its position at Q2, standing at 19 projects/5,236 rooms.
At the close of the second quarter, new project announcements 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 percent by projects and 20 percent by rooms year-over-year.
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 percent supply growth rate.
In 2026, LE analysts forecast 42 new hotels/5,375 rooms to open, for a 1.4 percent 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 percent supply growth rate increase.