Canada’s hotel construction pipeline has reached new record highs in the first quarter of 2025, with a total of 341 projects representing 47,426 rooms. This marks a 9% year-on-year increase in the number of projects and a 20% rise in total rooms, according to Lodging Econometrics’ latest trend report.
The growth reflects broad expansion across all phases of development. Projects currently under construction number 79, equating to 11,418 rooms—up 13% in projects and 25% in rooms from the same period in 2024.
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Developments scheduled to begin within the next 12 months have also risen sharply to 96 projects and 13,849 rooms. The early planning stage remains active, with 166 projects and 22,159 rooms, continuing a steady upward trend.
Ontario continues to lead by province
Ontario remains the dominant region for hotel development in Canada, with 203 projects and 28,822 rooms, accounting for 60% of all projects and 61% of all rooms nationally. These figures represent a year-on-year growth of 9% in project numbers and 21% in rooms.
British Columbia holds the second position, with 68 projects and 11,077 rooms. This province saw the most significant year-on-year growth among the top three, rising 21% in projects and 35% in rooms. Quebec follows with 23 projects and 2,540 rooms.
Together, Ontario, British Columbia, and Quebec account for 86% of all projects and 89% of total rooms in the national pipeline.
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By GlobalDataMajor cities see record highs
Toronto continues to top the list of Canadian cities for hotel development, reaching a new peak of 71 projects and 11,781 rooms. This marks a 6% increase in projects and a 26% rise in rooms compared to Q1 2024.
Vancouver also achieved a new all-time high, now with 33 projects and 7,004 rooms. These figures reflect a substantial year-on-year growth of 57% in projects and 72% in rooms.
Niagara Falls has also reached record levels, with 20 projects totalling 5,652 rooms.
Upper midscale and upscale segments expand
Upper midscale hotels represent the largest share of development by chain scale, comprising 132 projects and 13,870 rooms, or 39% of all projects. The upscale segment showed the strongest relative growth, now at 66 projects and 10,842 rooms—up 14% and 34% year-on-year, respectively.
Looking ahead, five new hotels opened in Canada during the first quarter of 2025, adding 518 rooms. A further 37 hotels, totalling 4,506 rooms, are expected to open before the end of the year.
Forecasts suggest 42 new hotels (5,024 rooms) will open in 2025, with further growth anticipated into 2026.
