Canada’s hotel construction pipeline edges up in Q2 2025, driven by Ontario and Vancouver

LE reports 333 projects representing 44,764 rooms in Canada’s total pipeline at the close of the second quarter, up 3 per cent in projects and 11 per cent in rooms year-over-year.

At the end of Q2, 68 projects with 9,038 rooms are under construction, accounting for 20 per cent of the total pipeline. Projects scheduled to break ground within the next 12 months are rising sharply, reaching 100 projects with 12,955 rooms—a 25 per cent year-over-year increase in projects and 40 per cent increase in rooms.

Early planning activity now represents half of Canada’s total pipeline, with 165 projects and a record-high 22,771 rooms, marking a 2 per cent increase in projects and an 11 per cent increase in rooms year-over-year.

Ontario dominates pipeline growth
Ontario continues to lead the country with 197 projects and 27,776 rooms, making up 59 per cent of Canada’s pipeline. This represents a 4 per cent year-over-year increase in projects and 15 per cent in rooms.

British Columbia also reaches record levels with 68 projects and 9,607 rooms, reflecting 15 per cent growth in projects and 14 per cent in rooms compared to last year. Quebec follows with 22 projects and 2,310 rooms. Together, these three provinces account for 86 per cent of all projects and 89 per cent of rooms in the national pipeline.

Toronto leads Canadian markets with 74 projects and 12,219 rooms, both record highs, up 9 per cent in projects and 28 per cent in rooms year-over-year. Vancouver records 33 projects and 5,473 rooms, a surge of 57 per cent in projects and 34 per cent in rooms. Niagara Falls holds steady with 19 projects and 5,236 rooms.

Chain scale and renovation trends
The upper midscale chain segment has the largest share of projects, with 126 projects and 13,203 rooms, followed by upscale properties at 66 projects and 9,258 rooms, showing 14 per cent growth in projects and 17 per cent growth in rooms year-over-year. The midscale segment remains stable with 39 projects and 3,491 rooms.

Renovations and brand conversions are also on the rise, reaching a record 124 projects and 16,448 rooms, up 10 per cent in projects and 20 per cent in rooms year-over-year.

Openings and forecasts
Canada opened 20 new hotels with 2,346 rooms in the first half of 2025. LE expects another 25 hotels with 2,969 rooms to open by year-end, for a total of 45 new hotels and 5,315 rooms, representing 1.4 per cent supply growth.

Looking ahead, LE forecasts 42 new hotels with 5,375 rooms to open in 2026 and 52 hotels with 5,744 rooms in 2027, with supply growth rates of 1.4 per cent and 1.5 per cent respectively.