Third-quarter data from Lodging Econometrics (LE) shows that Canada’s hotel development pipeline is in the midst of large expansion phase.

The pipeline has reached a historic peak of 327 projects (40,799 rooms). Compared with the third quarter of last year, the number of projects is up by 19% and the number of rooms by 8%.

Current under construction activity also shows significant expansion, with 81 active projects (10,596 rooms) representing a 45% surge in projects and a 29% increase in rooms year-over-year.

The early planning phase has experienced the most dramatic growth, with 177 projects (20,435 rooms) showing a 50% project increase and 14% room growth.

Another 69 projects (9,768 rooms) are scheduled to begin construction within the next 12 months.

Ontario dominates among the provinces, accounting for 59% of projects and 61% of rooms countrywide with record counts of 193 projects and 24,697 rooms. British Columbia follows with 60 projects and 8,420 rooms, while Quebec has 22 projects and 2,547 rooms and Alberta 16 projects and 1,647 rooms.

The top cities at the close of the third quarters are led by Toronto with 67 projects and 9,468 rooms – 23% of all the rooms in Canada’s total construction pipeline.

Following distantly are Vancouver with 22 projects/3,921 rooms, Niagara Falls with 17 projects accounting for 4,451 rooms, Montreal with 17 projects/2,092 rooms, and Ottawa-Gatineau, also reaching a record-high project count at Q3, with 14 projects/1,992 rooms.

During the first three quarters of 2024, Canada had nine new hotels open. LE is forecasting that another 12 hotels (1,359 rooms) will open by the end of the year, bringing the total year-end hotel opening count to 21 hotels (2,363 rooms).

For next year, LE is forecasting another 35 hotels (3,875) rooms to open, which will increase Canada’s supply totals by 1.1%. Scheduled new hotel openings for 2026 are anticipated to be 44 hotels adding another 5,079 rooms, a 1.4% increase in supply.