According to the year-end Lodging Econometrics (LE) Construction Pipeline Trend Report for Canada, the country ended 2023 at 294 projects and 38,396 rooms – just 11 projects short of the peak of 305 projects achieved in Q4 2019.

Canada’s pipeline is up 10% by projects and 7% by rooms, year-over-year (YOY).

At the close of 2023, there are 66 projects and 8,998 rooms under construction, up 27% by projects and 36% by rooms YOY. Scheduled to start construction within the next 12 months are 85 projects and 9,810 rooms, while those in early planning are at 143 projects and 19,588 rooms, up 12% by projects and 15% by rooms YOY.

New project announcements in the country were at their highest at Q4 2023 since Q3 2021, with 37 projects and 4,191 rooms, up 35% by projects and 26% by rooms.

LE analysts expect Canada’s hotel construction pipeline to remain strong and continue to expand through 2024 as construction starts in the country increased 44% YOY by projects and 49% by rooms at the close of Q4. Upper-midscale projects account for nearly 50% of the projects in the total pipeline at Q4 with record-high counts of 132 projects and 13,860 rooms. Upper-upscale projects in Canada also reached record-high project and room counts, with 20 projects and 4,606 rooms at the end of 2023.

Accounting for 59% of the projects and 60% of the rooms in Canada’s total pipeline, Ontario continues to lead with the largest number of projects in the pipeline at Q4 with all-time high counts of 173 projects and 23,112 rooms. British Columbia follows with 54 projects and 7,893 rooms, then the province of Quebec with 22 projects and 2,674 rooms, and the province of Alberta with 17 projects and 1,774 rooms.

Cities in Canada with the most projects in the pipeline continue to be led by Toronto with a record 65 projects and 9,391 rooms. Distantly following are Vancouver with record high totals of 23 projects and 4,317 rooms, then Montreal with 16 projects and 2,123 rooms and Niagara Falls with 11 projects and 3,999 rooms.

Canada had 25 new hotels with 3,278 rooms open in 2023. In 2024, LE forecasts that 29 new hotels/3,698 rooms will open. LE is forecasting a slight increase in Canada’s growth rate from 0.9% at the end of 2023 to 1% in 2024 and again in 2025 to 1.1% with 40 new hotels/4,013 rooms expected to open by year-end.