The latest Hotel Construction Pipeline Trend Report for Canada from Lodging Econometrics (LE) shows the country’s total pipeline has reached new all-time-high for project and room totals at the end of the first quarter of 2025, with 341 projects accounting for 47,426 rooms.

These record-breaking figures represent a 9% increase in projects and a 20% increase in rooms year-over-year (YOY).

Currently, projects under construction stand at 79 projects and 11,418 rooms, showing growth of 13% by projects and 25% by rooms YOY.

Projects scheduled to start construction in the next 12 months increased to 96 projects and 13,849 rooms, up 20% by projects and 44% by rooms YOY, signaling accelerated development timelines. Meanwhile, early-planning-stage projects have reached 166 projects with a record-setting 22,159 rooms, continuing their upward trajectory with increases of 1% by projects and 6% by rooms compared to Q1 2024.

At the Q1 close, hotel construction projects in Ontario continue to lead Canada’s construction pipeline with 203 projects and 28,822 rooms, up 9% and 21% YOY, representing 60% of the projects and 61% of the rooms in the total pipeline.

The next-largest number of projects and rooms in the pipeline at Q1 is British Columbia with 68 projects and 11,077 rooms, up an impressive 21% and 35% YOY, followed by Quebec with 23 projects and 2,540 rooms. These three provinces account for 86% of the projects and 89% of the rooms in the total pipeline in Canada at Q1.

Toronto, meanwhile, maintains its lead with the highest number of construction projects in the pipeline reaching a new all-time high with 71 projects totaling 11,781 rooms, up 6% and 26% YOY. Vancouver also reached a new all-time high, with 33 projects and 7,004 rooms, up a remarkable 57% and 72% YOY, followed by Niagara Falls with a record-high 20 projects and 5,652 rooms, up 67% and 39% YOY.

Five new hotels with 518 rooms opened in Canada during the first quarter. An additional 37 new hotels, accounting for 4,506 rooms, are scheduled to open by year-end.

According to LE analysts, 42 new hotels and 5,024 rooms will open in Canada in 2025. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2026 with 43 new hotel openings with 5,479 rooms.