As of Q1 2026, Canada has 331 hotels and 45,401 rooms in the total pipeline, according to Lodging Econometrics’ latest Hotel Construction Pipeline Trend Report.
Projects in the early-planning stage reached a new all-time high room count in Canada with 176 hotels and 24,949 rooms, up 6 percent and 13 percent year over year, respectively. This record-breaking early-planning total demonstrates sustained developer confidence and signals robust future growth for Canada’s hotel industry. Currently, there are 64 hotels and 8,125 rooms under construction in Canada, while 91 hotels and 12,327 rooms are scheduled to start construction in the next 12 months.
By chain scale, upper-midscale projects continue to lead the pipeline with record-high totals of 137 hotels and 14,173 rooms, representing 41 percent of all projects and showing impressive growth of 5 percent by projects year over year. The midscale segment also reached new all-time highs with 44 hotels and 3,827 rooms, up 13 percent and 9 percent year over year, respectively. Additionally, both the upper upscale and luxury chain scales achieved record-high project and room counts at Q1.
Key Markets
At the Q1 close, hotel construction projects in the province of Ontario continue to lead Canada’s construction pipeline with 190 hotels and 27,567 rooms, representing 57 percent of the projects and 61 percent of the rooms in the total pipeline. Following Ontario is British Columbia with 68 hotels and 9,938 rooms, then Quebec with 26 hotels and 2,971 rooms, up 13 percent and 17 percent year over year, respectively. These three provinces account for 86 percent of the projects and 89 percent of the rooms in the total pipeline in Canada at Q1.
In terms of cities, Toronto maintains its position as the market leader with 71 hotels and 11,420 rooms in the pipeline, representing 21 percent of all projects in Canada. Vancouver follows with 33 hotels and 5,781 rooms, then Niagara Falls with a record-high 23 hotels and 6,820 rooms, up an impressive 15 percent and 21 percent year over year, respectively. These three cities combined account for 38 percent of the projects and 53 percent of the rooms in Canada’s total pipeline.
Seven new hotels with 917 rooms opened in Canada during the first quarter. An additional 32 new hotels, accounting for 3,713 rooms, are scheduled to open by year-end. According to LE analysts, a total of 39 new hotels and 4,630 rooms will open in 2026, for a 1.2 percent growth rate. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2027 with a total of 51 forecasted new hotel openings with 5,666 rooms, marking a 1.5 percent new supply growth rate increase.