PORTSMOUTH, N.H. — At Q1’22, Canada’s hotel-construction pipeline currently stands at 258 projects/35,768 rooms, as reported in the Lodging Econometrics (LE) Construction Pipeline Trend Report for Canada. Projects remain unchanged year-over-year (YOY), but rooms are up by one per cent.
At the close of the first quarter, projects under construction in Canada came in at 62 projects/8,114 rooms. Projects scheduled to start construction in the next 12 months stand at 91 projects/12,473 rooms, up 23 per cent by projects and 50 per cent by rooms YOY. Projects in the early planning stage stand at 105 projects/15,181 rooms.
Ontario is leading Canada’s construction pipeline with 151 projects/20,533 rooms and is responsible for 59 per cent of the projects in the country. Following behind is B.C. with 36 projects/5,668 rooms and Alberta with 23 projects/3,365 rooms. Collectively, these provinces account for 81 per cent of projects in Canada’s hotel-construction pipeline.
Toronto leads the cities in Canada with most projects in the pipeline, coming in at 64 projects/9,312 rooms. Next is Montreal with 14 projects/2,066 rooms then Vancouver with 14 projects/2,016 rooms, Niagara Falls with 11 projects/3,341 rooms and Ottawa with 10 projects/1,694 rooms. In total, these five cities account of 44 per cent of the projects and 52 per cent of the rooms in Canada’s pipeline.
Top brands are Hampton by Hilton with 27 projects/3,016 rooms; IHG’s Holiday Inn Express with 22 projects/2,313 rooms; and TownePlace Suites by Marriott with 16 projects/1,728 rooms. Other notable brands include Home2Suites by Hilton, with record-high counts by projects and rooms in Q1’22 of 16 projects/1,711 rooms; Marriott’s Fairfield Inn with 16 projects/1,533 rooms; and Tru by Hilton with 13 projects/1,282 rooms.
Canada had 36 new hotels with 3,922 rooms open in 2021 at a growth rate of 1.1 per cent. In 2022, LE is forecasting that Canada will open 35 new hotel projects, accounting for 3,844 rooms for a growth rate of 1.1 per cent. In 2023, LE is forecasting a slight increase to 1.3 per cent, with counts expected to rise with 40 new hotel projects and 4,767 rooms by year-end.