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PORTSMOUTH, N.H. — At the close of Q1 2019, the total construction pipeline in Canada remained strong with 264 projects/33,023 rooms, according to analysts at Lodging Econometrics (LE).

Construction pipeline projects and rooms are both up 11 per cent year-over-year (YOY), driven by a surge in projects in the early planning stage, with 80 projects/11,328 rooms — up 48 per cent and 53 per cent YOY respectively. This jump in early-planning counts is the result of a record number of new projects being announced into the pipeline during the fourth quarter of 2018 (36 projects/5,380 rooms). 

There are currently 93 projects/10,466 rooms under construction and 91 projects/11,229 rooms scheduled to start construction in the next 12 months, representing a record high. Approximately 51 new projects (5,578 rooms) are forecast to open in 2019.

In 2020, counts are expected to increase, with 62 projects/7,005 rooms forecast to open. Should all these projects and rooms come online, this will mark a record high for annualized new hotel openings in Canada.

Projects in the pipeline for Ontario are at a record high, with 139 projects/17,374 rooms, which accounts for 52 per cent of the national pipeline. Alberta and B.C. are responsible for the bulk of the remaining projects with 38 projects/5,821 rooms and 37projects/4,068 rooms respectively.

The top five cities within these three provinces account for 35 per cent of the total pipeline. Toronto’s construction pipeline has also reached a record high, with 48 projects/6,570 rooms, which represents 18 per cent of the national pipeline. The rest of the top cities trail significantly with Vancouver at 12 projects/1,448 rooms, Edmonton with 11 projects/1,735 rooms, Calgary with 11 projects/1,239 rooms and Ottawa with 10 projects/1,684 rooms.

Three franchise companies make up 58 per cent of the Canadian pipeline projects, with 56 Hilton Worldwide projects, 52 Marriott International projects and 46 InterContinental Hotels Group projects across the country.

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