PORTSMOUTH, NH – As seen in the latest Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE), at the end of 2025’s third quarter, the total country’s pipeline reached 333 projects with 44,659 rooms, representing year-over-year (YOY) growth of 2% in projects and a robust 9% YOY increase in rooms.
At the close of Q3 2025, there are 66 projects comprising 8,398 rooms under construction in Canada. Projects scheduled to start construction within the next 12 months showed particularly strong momentum at the Q3 close, with 103 projects/13,969 rooms representing an impressive 49% surge in projects and a 43% increase in rooms YOY. The early planning phase contains 164 projects with 22,292 rooms, showing 9% room growth YOY. Additionally, Canada had 15 new project announcements with 2,005 rooms in Q3, representing an increase in projects and rooms YOY.
By chain scale, upper midscale hotels continue to lead the pipeline with 128 projects/13,700 rooms, representing 38% of total projects and 30% of rooms. The upscale chain scale follows with 63 projects/8,418 rooms, showing 11% project growth and 7% room growth YOY. Midscale hotels account for 42 projects/3,699 rooms. These top three chain scales combined total 233 projects/25,817 rooms, accounting for 70% of projects and 56% of rooms in the country’s total pipeline.
Combined hotel renovations and brand conversions show increased activity at the Q3 close, up 4% in projects and 18% in rooms YOY, and stand at 118 projects/16,088 rooms.
Ontario continues to dominate provincial hotel construction in Canada, accounting for 58% of projects and 61% of rooms countrywide with 194 projects/27,083 rooms, showing 10% room growth YOY. British Columbia follows with a record-high 70 projects/9,883 rooms, demonstrating strong 17% growth in both projects and rooms YOY. Quebec has 26 projects/2,959 rooms. The top three provinces combined account for 290 projects/39,925 rooms, representing 87% of projects and 90% of rooms in Canada’s total pipeline.
The top cities in Canada at the Q3 close are led by Toronto with 71 projects and 11,533 rooms, which claims 21% of all the projects and 26% of all rooms in Canada’s total construction pipeline. Vancouver follows with 36 projects/5,944 rooms, demonstrating growth of 64% in projects and 52% in rooms YOY, and Niagara Falls rounds out the top three with 19 projects/5,238 rooms.
During the first three quarters of 2025, Canada had 29 new hotels open, adding 3,594 rooms to the country’s open and operating hotel supply. LE is forecasting another 12 hotels/1,235 rooms will open by year-end 2025 to bring Canada’s total year-end hotel opening count to 41 hotels/4,829 rooms, representing a 1.3% increase in supply. In 2026, LE is forecasting 42 hotels/5,356 rooms to open, which will increase Canada’s supply totals by 1.4%. LE analysts forecast another 53 hotel openings/5,865 rooms to open in 2027, representing a 1.5% increase in the current supply.
About Lodging Econometrics (LE)
For over 25 years, Lodging Econometrics (LE) has been the industry-leading provider of global hotel intelligence and decision-maker contact information. LE custom-builds business development database programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. To learn more about our business development programs contact us: +1 603.431.8740, ext 0025 or [email protected].
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