Canada’s hotel construction pipeline is again reporting lower volumes compared to the year previous.

Industry analysts Lodging Econometrics report that Canada’s hotel construction pipeline stands at 257 projects and 34,167 rooms at the end of the third quarter of this year. Those figures are down slightly—by 7% for projects and 5% for rooms—compared with the end of the third quarter last year.

Projects under construction stand at 70 projects and 9,039 rooms, which are down by 20% and 12% for projects and rooms respectively compared with the first nine months of 2020. Projects scheduled to start construction in the next 12 months, meanwhile stand at 85 projects and 10,449 rooms (down 17% and 13% for projects and rooms, respectively), while those in the early planning stage are up by 17% for projects and 9% for rooms.

Ontario is the most active province for pipeline projects, standing at 152 projects and 18,787 rooms and accounting for 59% of the projects in Canada’s total pipeline. Next is British Columbia, with 32 projects/5,050 rooms, and then Alberta, with 23 projects/3,691 rooms. These three provinces combined account for 81% of the rooms in Canada’s hotel pipeline.

Toronto continues to lead the way with the most projects in the pipeline with 65 projects and 9,123 rooms, and claiming 27% of all the rooms in Canada’s construction pipeline. Montreal (14 projects, 2,090 rooms) and Niagara Falls (12 projects, 1,885 rooms) followed distantly. These three cities combined account for 35% of the rooms in the total pipeline.

The top franchise companies in Canada's construction pipeline are Marriott International, at an all-time high count of 68 projects and 8,460 rooms. The company is followed closely by Hilton Worldwide with a record 66 projects and 7,660 rooms, and InterContinental Hotel Group (43 projects and 4,357 rooms). These companies make up 69% of projects in Canada’s total construction pipeline.

Finally, at the end of the third quarter of the year, the market for renovations and conversions reached its high level ever. Renovation totals reached 16 projects and 3,080 rooms, while conversions ended the quarter at 68 projects and 7,458 rooms.

LE forecasts Canada will open 43 new hotels and 5,176 rooms in 2022.