HENDERSONVILLE, Tenn. — Canada’s pipeline consisted of 63 hotel projects accounting for 8,011 rooms in construction as of April 2019, according to data from STR. This represents an 8.7-per-cent year-over-year decrease in the number of rooms in the final phase of development pipeline.
While overall room construction is down year over year, STR’s forecast projects that ongoing supply growth will lower occupancy rates for 2019 as a whole and raise the room-price ceiling for the country.
The majority of rooms in construction are upper midscale or upscale, representing 3,081 rooms and 2,947 rooms respectively. While construction activity for the upper-midscale segment was up 9.3 per cent year over year, activity for the upscale segment was down 16.6 per cent.
Three provinces or territories reported more than 1,000 rooms under construction. Ontario led with 2,631 rooms, which represented 1.9 per cent of the country’s existing supply, followed by Alberta (2,048 rooms, 2.6 per cent) and Quebec (1,160 rooms, 1.5 per cent).