Hotels are hot!
Lodging Econometrics, a lodging industry analyst group, reported yesterday that the total hotel construction pipeline in Canada reached an all-time high in the third quarter of this year. Ontario’s market leads the way.
According to the group’s latest report, there are now 289 hotel construction projects planned or underway across the country with a total of more than 38,400 rooms. The total construction volume is up 17 percent over the same period last year; room volume is up 28 percent.
The report goes on to say that there are 85 projects (10,337 rooms) under construction, with another 125 (14,574 rooms) scheduled to start in the next 12 months, and a further 79 (13,542) in the planning stages. As well, the average hotel size has risen from 127 rooms at this time last year to 171 currently.
In the third quarter alone, Canada had 47 new project announcements with 5,760 rooms. This is the largest count the group has recorded in the country for a single quarter, and is a 42-percent increase quarter over quarter.
Ontario is the most active province for pipeline projects. Construction volume in the hotel space is at a record-high, with 147 projects and 19,442 rooms. Next is British Columbia, also at a record high, with 47 projects/6,520 rooms. Alberta followed with 31 projects/4,889 rooms. The three provinces account for 80 percent of the rooms in Canada’s pipeline.
Toronto is the country’s most active hotel construction market, with 49 projects (7,527 rooms) planned or underway. This represents 20 percent of the total rooms under construction in the country. Following 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 having 1,773 rooms. These five cities alone account for 42 percent of the rooms in the total pipeline.
Those companies building the greatest number of projects are Hilton Worldwide at an all-time high of 58 projects/6,848 rooms, Marriott International with a record 55 projects having 6,951 rooms, and InterContinental Hotels Group with 50 projects/4,806 rooms. These three companies account for 56 percent of the projects in Canada’s pipeline.
The top brands in Canada’s pipeline are Holiday Inn Express with 29 projects/2,838 rooms, Hampton by Hilton with 27 projects/3,130 rooms, and TownePlace Suites by Marriott with 14 projects/1,464 rooms. Hyatt Place has plans to build 18 projects/3,043 rooms, Courtyard by Marriott 11 projects/1,711 rooms, and Best Western Plus with 9 projects/772 rooms.