Canada’s hotel construction hits record highs with thirteen percent growth year-over-year, driven by a tourism boom and increasing demand for accommodations.

Canada’s hotel construction pipeline has surged to unprecedented levels, with a total of 333 projects comprising 43,413 rooms—marking a substantial 13% year-over-year (YOY) increase for both projects and room count.

As of year-end 2024, the number of projects under construction has risen to 76, accounting for 10,442 rooms, reflecting a 15% YOY increase in projects and a 16% rise in rooms. Additionally, 87 projects with 11,698 rooms are slated to break ground within the next 12 months, showing a modest 2% growth in projects yet a notable 19% rise in room volume YOY. The early planning stage also witnessed strong expansion, closing Q4 with 170 projects and a record-setting 21,273 rooms—up 19% in project volume and 9% in room count YOY.

Among the various hotel chain scales, the upper midscale segment dominates, boasting 132 projects and 14,039 rooms, which account for 40% of all planned projects and 32% of total rooms. The upper upscale category follows closely with 62 projects and 8,570 rooms, while upscale hotels have hit record highs at 25 projects with 5,591 rooms.

Provincially, Ontario remains the undisputed leader in hotel development, hitting all-time highs with 200 projects and 26,976 rooms—an impressive 16% YOY increase in projects and 17% growth in rooms, representing 60% of the nation’s total pipeline. British Columbia ranks second with 59 projects and 8,480 rooms, followed by Quebec with 24 projects and 2,714 rooms. Manitoba has also reached record levels, totaling 14 projects and 1,432 rooms.

City-wise, Toronto leads the country’s hotel construction pipeline, setting new records with 70 projects and 10,053 rooms—accounting for 21% of all pipeline projects nationwide. Vancouver follows with an all-time high of 25 projects and 4,375 rooms, while Niagara Falls has reached historic levels with 20 projects and 5,652 rooms. Montreal and Ottawa-Hull have also achieved record figures, with 18 projects (2,199 rooms) and 14 projects (1,991 rooms), respectively.

Renovations and brand conversions are also at historic highs. Hotel conversions now stand at 83 projects with 8,218 rooms, while the total number of renovation and brand conversion projects has soared to 120, encompassing 14,974 rooms—up 10% in project volume and 18% in room count YOY. New project announcements (NPAs) remain strong as well, with 36 projects adding 5,057 rooms in Q4 2024.

In terms of new hotel openings, Canada welcomed 15 new properties with a total of 1,478 rooms by the close of Q4 2024. Looking ahead, projections indicate the opening of 43 new hotels with 5,321 rooms in 2025, reinforcing a positive growth trend. For 2026, another 43 hotels are expected to launch, bringing an additional 6,547 rooms into the country’s hospitality market.

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