In the Q3 2023 Hotel Construction Pipeline Trend Report for Canada by Lodging Econometrics, analysts report that the total construction pipeline in Canada stands at 275 hotels/37,780 rooms, up 5 percent by projects and 8 percent by rooms year over year. In the third quarter, Canada had 22 new hotels announcements with 2,816 rooms.
Hotel projects presently under construction in Canada at Q3 stand at 56 hotels/8,228 rooms, up 4 percent and 18 percent year-over-year, respectively. Projects scheduled to start construction in the next 12 months stand at 101 hotels/11,548 rooms at Q3, while projects in the early planning stage stand at 118 hotels/18,004 rooms; a 13 percent year-over-year increase by projects and a 33 percent year-over-year increase by rooms.
Hotel renovations in Canada at Q3 stand at 40 hotels/5,469 rooms, and brand conversions ended the quarter at 58 hotels/6,025 rooms.
Ontario continues to lead Canada’s hotel construction pipeline with 160 hotels and a record high of 22,294 rooms, accounting for 58 percent of the hotels and 59 percent of the rooms in the country’s total pipeline. British Columbia follows with 51 hotels/8,500 rooms, then Quebec with 19 hotels/2,231 rooms, Alberta with 18 hotels/1,832 rooms and Saskatchewan with 7 hotels/674 rooms.
The cities with the largest number of projects in the hotel construction pipeline in Canada at Q3 are led by Toronto, with 61 hotels/9,049 rooms, claiming 22 percent of all the projects, and 24 percent of all rooms in the country’s total pipeline. Following distantly is Vancouver with 22 hotels and a record-high count of 3,890 rooms, then Montreal with 14 hotels/1,735 rooms, Niagara Falls with 13 hotels/4,712 rooms and Ottawa-Hull with 9 hotels/1,453 rooms. These five cities alone account for 43 percent of the projects and 55 percent of the rooms in Canada’s total pipeline.
In the first three quarters of 2023, Canada had 16 new hotel openings. LE’s forecast for new hotel openings predicts another six hotels will open in the last quarter of 2023, bringing the total to 22 hotels/2,917 rooms for a 0.8 percent room supply increase. LE analysts forecast a 1.2 percent increase in room supply growth for 2024, with 35 hotels/4,200 rooms expected to open, and in 2025, LE anticipates that 40 hotels/4,877 rooms will open for a 1.3 percent room supply increase.