According to Lodging Econometrics’ Q4 2022 "Hotel Construction Pipeline Trend Report" for Canada, the country’s total construction pipeline stands at 267 hotels and 35,758 rooms, up 2 percent by projects and 1 percent by rooms year over year.
At year-end 2022, projects presently under construction in Canada stand at 52 hotels and 6,593 rooms. Projects scheduled to start construction in the next 12 months stand at 87 hotels and 12,098 rooms, a 2 percent increase in projects year over year and a 15 percent increase in rooms year over year. Projects in the early planning stage are at an all-time high with 128 hotels and 17,067 rooms, up 11 percent by projects year over year and 2 percent by rooms year over year.
Canada’s hotel construction pipeline should remain strong throughout 2023, despite the recent interest rate increase, as building activity and new project announcements remain above prepandemic levels. In the fourth quarter, Canada had 24 new project announcements with 3,122 rooms; the highest they’ve been in 13 quarters.
At year-end 2022, combined renovation and conversion projects in Canada reached a record high of 105 projects, accounting for 12,141 rooms. Renovation totals closed the fourth quarter standing at 50 hotels and 6,080 rooms and conversion totals are at 55 hotels and 6,061 rooms.
Top Markets
Ontario is the most active province for pipeline projects in Canada at the Q4 2022 close, with 153 projects and a record-high 20,996 rooms. Next is British Columbia with record-high project and room counts of 54 hotels and 8,211 rooms, and then Quebec with 18 hotels and 2,318 rooms. Together, these three provinces account for 84 percent of the projects and 88 percent of the rooms in Canada’s pipeline.
The top city in Canada’s hotel construction pipeline, at the close of the fourth quarter, is Toronto, with a record project count of 65 hotels and 9,617 rooms. Following Toronto is Vancouver with 20 hotels and 3,008 rooms, then Niagara Falls with 13 hotels and 3,899 rooms.
Top Companies
The top hotel franchise company in Canada’s construction pipeline, at an all-time high, is Marriott International, with 79 hotels and 10,457 rooms. Hilton follows with 64 hotels and 7,826 rooms, then InterContinental Hotels & Resorts with 41 hotels and 4,153 rooms. These three companies claim 69 percent of the projects and 63 percent of the rooms in the total Canada construction pipeline.
The top brands in Canada’s pipeline at the Q4 close are Hilton’s upper midscale Hampton by Hilton brand with 25 hotels and 2,872 rooms, Marriott’s TownePlace Suites with record high project and room counts of 20 hotels and 2,022 rooms, and IHG’s Holiday Inn Express with 19 hotels and 2,053 rooms. Other notable brands in the Canadian hotel construction pipeline are Fairfield Inn by Marriott with 19 hotels and 1,805 rooms, Home2 Suites by Hilton with 17 hotels and 1,821 rooms, and Hyatt Place with 11 hotels and 1,695 rooms.
Canada had 29 new hotels, accounting for 3,213 rooms open in 2022. LE’s forecast for new hotel openings in 2023 anticipates 31 hotels with 3,756 rooms will open in Canada, for a 1.1 percent room supply increase. LE analysts forecast another 1.1 percent increase in room supply in 2024 with 39 hotels and 4,147 rooms expected to open.