PORTSMOUTH, N.H. — The latest Hotel Construction Pipeline Trend Report for Canada from Lodging Econometrics (LE) shows the country’s total pipeline has reached new all-time high project and room totals at Q1 2025, with 341 projects accounting for 47,426 rooms. These record-breaking figures represent a robust nine-per-cent increase in projects and a 20-per-cent increase in rooms year-over-year (YOY).
Currently, projects under construction stand at 79 projects/11,418 rooms, showing solid growth of 13 per cent by projects and 25 per cent by rooms YOY. Projects scheduled to start construction sometime within the next 12 months increased substantially at Q1 to 96 projects/13,849 rooms, up 20 per cent by projects and 44 per cent by rooms YOY, signaling accelerated development timelines. Meanwhile, early planning stage projects have reached 166 projects with a record-setting 22,159 rooms, continuing their upward trajectory with increases of one per cent by projects and six per cent by rooms compared to Q1 2024.
By chain scale, upper midscale projects account for the largest percentage of the pipeline with 132 projects/13,870 rooms, representing 39 per cent of the total projects. The upscale segment showed strong growth with 66 projects/10,842 rooms, up 14 per cent and 34 per cent YOY.
At the Q1 close, hotel construction projects in the province of Ontario continue to lead Canada’s construction pipeline with 203 projects/28,822 rooms, up nine per cent and 21 per cent YOY, representing 60 per cent of the projects and 61 per cent of the rooms in the total pipeline. Following Ontario, the largest number of projects and rooms in the pipeline at Q1 is British Columbia with 68 projects/11,077 rooms, up an impressive 21 per cent and 35 per cent YOY, then Quebec with 23 projects/2,540 rooms. These three provinces account for 86 per cent of the projects and 89 per cent of the rooms in the total pipeline in Canada at Q1.
Focusing on cities, Toronto maintains its lead with the highest number of construction projects in the pipeline reaching a new all-time high with 71 projects totaling 11,781 rooms, up six per cent and 26 per cent YOY. Vancouver also reached a new all-time high, with 33 projects/7,004 rooms, up a remarkable 57 per cent and 72 per cent YOY, followed by Niagara Falls with a record-high 20 projects/5,652 rooms, up 67 per cent and 39 per cent YOY.
Five new hotels with 518 rooms opened in Canada during the first quarter. An additional 37 new hotels, accounting for 4,506 rooms, are scheduled to open by year-end. According to LE analysts, 42 new hotels and 5,024 rooms will open in Canada in 2025. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2026 with 43 new hotel openings with 5,479 rooms.
