PORTSMOUTH, N.H. — According to the latest data from Lodging Econometrics (LE), the total construction pipeline in Canada in the second quarter of 2018 boasted 240 projects totalling 29,780 rooms, up 13 per cent (28 projects) year-over-year (YOY).
Analysts predict the pipeline for this economic cycle will likely top out soon, having risen within 10 per cent record levels last seen in 2007.
There are 82 projects/10,352 rooms currently under construction (up 17 per cent YOY), of which 13 projects/1,448 rooms began construction in the first half of 2018. Projects scheduled to start construction in the next 12 months are at 90 projects/10,363 rooms — a one-per-cent decrease YOY. Those in early planning include 68 projects/9,065 rooms — representing a 33-per-cent increase in projects.
In the first half of 2018, Canada had 28 new hotel openings — almost as many as the whole of 2017, which saw 31 hotels open. LE forecasts another 18 new hotel openings in the second half of 2018. Looking forward, it is forecast that 2019 will see 55 projects/6,870 rooms open and 2020 will have 62 projects/6,528 rooms open.
The top hotel companies in Canada’s construction pipeline (by projects) are: Marriott International (48 projects/6,661 rooms), Hilton Worldwide (42 projects/5,077 rooms) and InterContinental Hotels Group (IHG) (42 projects/4,233 rooms).
Toronto continues to lead Canadian markets in pipeline projects, 40 projects/5,685 rooms, followed by Calgary (13 projects/2,120 rooms) and Edmonton (13 projects/1,950 rooms).