Hotel construction ahead of 2019 pace
It appears as though even the COVID-19 pandemic can’t contain demand for hotel facilities in Canada.
The latest report from Lodging Econometrics shows 296 projects and 39,645 rooms in Canada’s hotel construction pipeline at the close of the second quarter of this year. That’s 8 percent more projects and 11 percent more rooms than were in the pipeline at the same time last year.
All stages of the pipeline saw increases. Projects under construction stand at 98 projects/12,255 rooms, up 7 percent by projects and 10 percent by rooms. Scheduled to start construction in the next 12 months are 107 projects and 12,530 rooms—both up 13 percent. Those in the early planning stage stand at 91 projects/14,860 rooms, up 6 percent and 9 percent respectively.
Ontario continues to lead Canada’s construction pipeline with 154 projects/20,526 rooms—a record high. The province accounts for 52 percent of the projects in Canada’s total pipeline. British Columbia follows with 47 projects/6,530 rooms and then Alberta with 30 projects/4,682 rooms and Quebec with 26 projects/3,387 rooms. Collectively, these four provinces account for 89 percent of the rooms in Canada’s pipeline.
Toronto leads the nation with 59 projects/8,303 rooms—or 20 percent of all the projects in the country’s construction pipeline. Montreal follows with 19 projects and 2,484 rooms (both record counts). Niagara Falls (14 projects/3,748 rooms), Vancouver (12 projects/1,609 rooms), and Ottawa with (10 projects/1,783 rooms) round off the top five, and combine for 45 percent 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 68 projects/8,202 rooms and Marriott International with 64 projects/7,918 rooms. InterContinental Hotels Group (IHG) follows with 55 projects/5,263 rooms. Combined, these three franchise companies claim 63 percent of the projects in the total pipeline.
The top brands in Canada’s pipeline are IHG’s Holiday Inn Express with 33 projects/3,263 rooms, and Hampton by Hilton, at a record high with 30 projects/3,379 rooms. Fairfield Inn by Marriott follows with 16 projects/1,530 rooms, also at an all-time high.