At the end of the third quarter 2025, the latest Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics shows the total country’s pipeline reached 333 projects with 44,659 rooms, representing year-over-year growth of 2 percent in projects and a 9 percent year-over-year increase in rooms.
At the close of Q3 2025, there are 66 projects comprising 8,398 rooms under construction in Canada. Projects scheduled to start construction within the next 12 months showed particularly strong momentum at the Q3 close, with 103 projects/13,969 rooms representing an impressive 49 percent surge in projects and a 43 percent increase in rooms year-over-year. The early planning phase contains 164 projects with 22,292 rooms, showing 9 percent room growth year-over-year. Additionally, Canada had 15 new project announcements with 2,005 rooms in Q3, representing an increase in projects and rooms year-over-year.
By chain scale, upper midscale hotels continue to lead the pipeline with 128 projects/13,700 rooms, representing 38 percent of total projects and 30 percent of rooms. The upscale chain scale follows with 63 projects/8,418 rooms, showing 11 percent project growth and 7 percent room growth year-over-year. Midscale hotels account for 42 projects/3,699 rooms. These top three chain scales combined total 233 projects/25,817 rooms, accounting for 70 percent of projects and 56 percent of rooms in the country’s total pipeline.
Combined hotel renovations and brand conversions show increased activity at the Q3 close, up 4 percent in projects and 18 percent in rooms year-over-year, and stand at 118 projects/16,088 rooms.
Ontario continues to dominate provincial hotel construction in Canada, accounting for 58 percent of projects and 61 percent of rooms countrywide with 194 projects/27,083 rooms, showing 10 percent room growth year-over-year. British Columbia follows with a record-high 70 projects/9,883 rooms, demonstrating strong 17 percent growth in both projects and rooms year-over-year. Quebec has 26 projects/2,959 rooms. The top three provinces combined account for 290 projects/39,925 rooms, representing 87 percent of projects and 90 percent of rooms in Canada’s total pipeline.
The top cities in Canada at the Q3 close are led by Toronto with 71 projects and 11,533 rooms, which claims 21 percent of all the projects and 26 percent of all rooms in Canada’s total construction pipeline. Vancouver follows with 36 projects/5,944 rooms, demonstrating growth of 64 percent in projects and 52 percent in rooms year-over-year, and Niagara Falls rounds out the top three with 19 projects/5,238 rooms.
During the first three quarters of 2025, Canada had 29 new hotels open, adding 3,594 rooms to the country’s open and operating hotel supply. LE is forecasting another 12 hotels/1,235 rooms will open by year-end 2025 to bring Canada’s total year-end hotel opening count to 41 hotels/4,829 rooms, representing a 1.3 percent increase in supply. In 2026, LE is forecasting 42 hotels/5,356 rooms to open, which will increase Canada’s supply totals by 1.4 percent. LE analysts forecast another 53 hotel openings/5,865 rooms to open in 2027, representing a 1.5 percent increase in the current supply.