PORTSMOUTH, N.H. — The total construction pipeline in Canada soared to an all-time high in the third quarter of 2019 with 289 projects/38,453 rooms, according to Lodging Econometrics (LE). For the quarter, construction pipeline projects are up 17 per cent and rooms are up a remarkable 28 per cent year-over-year (YOY).
Currently, there are 85 projects/10,337 rooms under construction. Projects scheduled to start construction in the next 12 months have experienced an extraordinary 47-per-cent increase in both projects and rooms, YOY, standing at a record high of 125 projects/14,574 rooms.
Projects in the early planning stage stand at 79 projects with an impressive 13,542 rooms, representing an eight-per-cent increase in projects and a 46-per-cent increase in rooms. This substantial rise in rooms has increased the average hotel size in the early planning stage from 127 rooms a year ago to 171 rooms.
In Q3 2019, there were 47 new project announcements in Canada, encompassing 5,760 rooms. This is the largest count LE has recorded in the country for a single quarter and marks a 42-per-cent increase quarter over quarter.
Through the third quarter, 44 new hotels/5,330 rooms opened with an additional 7 new hotels/641 rooms scheduled to open before year-end. Looking ahead, the LE forecast for new hotel openings shows 59 new hotels with 6,440 rooms expected to open in 2020 and 70 new hotels/7,714 rooms for 2021. If all new hotels forecast for 2021 come online, it will represent the largest count of new hotel openings since LE began tracking Canada in 2008.
Ontario is the most active province for pipeline projects in Canada, which is at a record-high, with 147 projects/19,442 rooms. Next is B.C., also at a record high, with 47 projects/6,520 rooms, followed by Alberta with 31 projects/4,889 rooms. Together these three provinces account for 80 per cent of the rooms in Canada’s Pipeline.
Toronto leads the country as the construction pipeline’s top city with 49 projects/7,525 rooms — a record high that represents 20 per cent of all rooms in the pipeline. Following distantly are Niagara Falls with 14 projects/3,125 rooms, Ottawa with a record 14 projects/2,226 rooms, Vancouver with 14 projects/1,660 rooms and Montreal with a record 13 projects with 1,773 rooms. Combined, these five cities account for 42 per cent of the rooms in the total pipeline.
The top franchise companies in Canada’s construction pipeline are Hilton Worldwide at an all-time high with 58 projects/6,848 rooms, followed closely by Marriott International with a record 55 projects having 6,951 rooms and InterContinental Hotels Group (IHG) with 50 projects/4,806 rooms. These three companies make up 56 per cent of the projects in the total pipeline.
The top brands in Canada’s pipeline are IHG’s Holiday Inn Express (29 projects/2,838 rooms), Hampton by Hilton (27 projects/3,130 rooms) and TownePlace Suites by Marriott (14 projects/1,464 rooms).