This expansion is primarily driven by Ontario, which accounts for the majority of projects and rooms, followed by British Columbia and Quebec. The trend is expected to continue, with new hotel openings projected to increase the country’s supply by 1.3% by the end of 2025.

The Canadian hotel industry is witnessing a notable expansion in its construction pipeline, as reported in the latest Canada Hotel Construction Pipeline Trend Report by Lodging Econometrics (LE). At the end of the third quarter of 2025, the pipeline reached 333 projects with 44,659 rooms, reflecting a year-over-year (YOY) growth of 2% in projects and a robust 9% increase in rooms.

Current Construction Status

As of the close of Q3 2025, Canada has 66 projects with 8,398 rooms actively under construction. Projects scheduled to begin construction within the next 12 months are showing significant momentum, with 103 projects and 13,969 rooms, marking a 49% increase in projects and a 43% increase in rooms YOY. The early planning phase includes 164 projects with 22,292 rooms, indicating a 9% growth in rooms YOY. Additionally, 15 new project announcements in Q3 added 2,005 rooms, contributing to the overall growth.

Chain Scale Analysis

Upper midscale hotels continue to dominate the pipeline, with 128 projects and 13,700 rooms, representing 38% of total projects and 30% of rooms. The upscale chain scale follows, with 63 projects and 8,418 rooms, showing an 11% increase in projects and a 7% increase in rooms YOY. Midscale hotels account for 42 projects and 3,699 rooms. Together, these top three chain scales comprise 233 projects and 25,817 rooms, accounting for 70% of the country’s total projects and 56% of its total rooms.

Renovations and Conversions

The combined activity of hotel renovations and brand conversions has increased, with a 4% rise in projects and an 18% increase in rooms YOY. As of Q3, there are 118 projects and 16,088 rooms undergoing renovations or conversions.

Provincial and City Breakdown

Ontario leads the provincial hotel construction landscape, holding 58% of projects and 61% of rooms nationwide, with 194 projects and 27,083 rooms, showing a 10% increase in rooms YOY. British Columbia follows with a record 70 projects and 9,883 rooms, demonstrating strong 17% growth in both projects and rooms YOY. Quebec has 26 projects and 2,959 rooms. Combined, these top three provinces account for 290 projects and 39,925 rooms, representing 87% of projects and 90% of rooms in Canada’s total pipeline.

Toronto is the leading city, with 71 projects and 11,533 rooms, accounting for 21% of all projects and 26% of all rooms in Canada’s total construction pipeline. Vancouver follows with 36 projects and 5,944 rooms, showing a 64% increase in projects and a 52% rise in rooms YOY. Niagara Falls is third, with 19 projects and 5,238 rooms.

Future Projections

During the first three quarters of 2025, Canada saw 29 new hotels open, adding 3,594 rooms to its operating supply. LE forecasts an additional 12 hotels with 1,235 rooms will open by the end of 2025, bringing the total to 41 hotels and 4,829 rooms, a 1.3% increase in supply. In 2026, 42 hotels with 5,356 rooms are expected to open, resulting in a 1.4% increase in supply. By 2027, LE projects another 53 hotel openings with 5,865 rooms, representing a 1.5% increase in current supply.