The Canadian hotel industry is experiencing significant growth with a 49 per cent surge in projects scheduled to begin construction within the next 12 months. The pipeline is primarily driven by Ontario, which accounts for the majority of projects and rooms, followed by British Columbia and Quebec.
According to the latest Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of 2025’s third quarter, the total country’s pipeline reached 333 projects with 44,659 rooms, representing year-over-year (YOY) growth of 2 per cent in projects and a robust 9 per cent year-over-year increase in rooms. There are currently 66 projects comprising 8,398 rooms under construction in Canada.
Ontario continues to dominate provincial hotel construction in Canada, accounting for 58 per cent of projects and 61 per cent of rooms countrywide with 194 projects/27,083 rooms, showing 10 per cent room growth YOY. British Columbia follows with a record-high 70 projects/9,883 rooms, demonstrating strong 17 per cent growth in both projects and rooms YOY. Quebec has 26 projects/2,959 rooms. The top three provinces combined account for 290 projects/39,925 rooms, representing 87 per cent of projects and 90 per cent 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 per cent of all the projects and 26 per cent of all rooms in Canada’s total construction pipeline. Vancouver follows with 36 projects/5,944 rooms, demonstrating growth of 64 per cent in projects and 52 per cent in rooms YOY, 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 per cent 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 per cent. LE analysts forecast another 53 hotel openings/5,865 rooms to open in 2027, representing a 1.5 per cent increase in the current supply.
