What's Happening?
The Canadian hotel construction industry is experiencing significant growth, as reported by Lodging Econometrics. By the end of the third quarter of 2025, the country's hotel construction pipeline reached
333 projects with 44,659 rooms, marking a year-over-year increase of 2% in projects and 9% in rooms. Ontario leads the provincial construction efforts, accounting for 58% of projects and 61% of rooms. British Columbia and Quebec follow, contributing to a combined total of 290 projects and 39,925 rooms. The upper midscale hotel segment dominates the pipeline, with 128 projects and 13,700 rooms. The upscale and midscale segments also show notable growth. The report highlights a strong momentum in projects scheduled to start within the next 12 months, with a 49% increase in projects and a 43% rise in rooms year-over-year.
Why It's Important?
The expansion in hotel construction reflects a robust recovery and growth in the Canadian hospitality sector, which is crucial for the economy. This surge indicates increased investor confidence and a positive outlook for tourism and business travel. The growth in hotel projects is likely to create numerous job opportunities, boosting local economies, particularly in Ontario, British Columbia, and Quebec. The focus on upper midscale and upscale hotels suggests a shift towards catering to a more affluent clientele, potentially increasing tourism revenue. This development also underscores the importance of the hospitality industry in Canada's economic landscape, contributing to GDP growth and enhancing the country's global tourism appeal.
What's Next?
The continued growth in hotel construction is expected to persist, with forecasts indicating further increases in hotel openings in 2026 and 2027. This trend suggests ongoing investment in the hospitality sector, which could lead to more competitive offerings and improved services for travelers. Stakeholders, including hotel chains and investors, are likely to focus on sustainability and innovation to attract environmentally conscious travelers. The expansion may also prompt government and industry leaders to invest in infrastructure and marketing to support the anticipated increase in tourism.
