The latest Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics (LE) finds that there are 333 projects and 44,764 rooms in the country’s total pipeline at the close of the second quarter of this year. Those figures represent a 3% increase in projects and an 11% increase in rooms year-over-year (YOY).

At Q2, hotel projects under construction in Canada stand at 68 projects and 9,038 rooms, each respectively accounting for 20% of the total pipeline. Projects scheduled to start construction in the next 12 months show YOY growth at Q2, standing at 100 projects and 12,955 rooms for a 25% YOY increase by projects and a 40% YOY increase by rooms. Accounting for 50% of the projects in Canada’s total pipeline at Q2, projects in early planning stand at 165 projects for a 2% YOY increase and a new record-high 22,771 rooms for an 11% YOY increase by rooms.

Ontario continues to dominate Canada’s hotel landscape, with 59% of the projects in the total pipeline, and 197 projects and 27,776 rooms. Those figures are up 4% YOY by projects and 15% YOY by rooms. British Columbia stands at a record-high 68 projects with 9,607 rooms, showing growth of 15% YOY by projects and 14% YOY by rooms. Quebec follows with 22 projects and 2,310 rooms. Together, these three provinces account for 86% of the projects and 89% of the rooms in Canada’s hotel construction pipeline at Q2.

The top cities in Canada at the Q2 close are led by Toronto with record-high totals of 74 projects and 12,219 rooms and showing growth of 9% YOY by projects and 28% YOY by rooms. At the Q2 close, Vancouver records a record-high project total of 33 projects and 5,473 rooms, representing remarkable growth of 57% by projects and 34% by rooms YOY. Niagara Falls maintains its position at Q2, standing at 19 projects and 5,236 rooms.

At the close of the second quarter, new project announcements in Canada reached 13 projects and 1,896 rooms, while construction starts stand at six projects and 577 rooms. Combined hotel renovations and brand conversions in Canada achieved record-high project and rooms totals of 124 projects and 16,448 rooms, demonstrating growth of 10% by projects and 20% by rooms YOY.

Twenty new hotels with 2,346 rooms opened in Canada during the first half of 2025, with an additional 25 new hotels and 2,969 rooms scheduled to open before year-end. LE’s anticipates 45 new hotels and 5,315 rooms will open by year-end, representing a 1.4% supply growth rate.

In 2026, LE analysts forecast 42 new hotels/5,375 rooms to open, for a 1.4% supply growth rate. LE’s newly released 2027 new hotel openings forecast for Canada anticipates 52 new hotels/5,744 rooms will open, for a 1.5% supply growth rate increase.