Canada's Hotel Development Pipeline Surges to Record 345 Projects

Canada's hotel construction pipeline hit a record 345 projects comprising 47,874 rooms at the end of the second quarter of 2026, according to Lodging Econometrics. This represents a 4% increase in projects and a 7% increase in rooms year-over-year, with Ontario claiming 55% of the national pipeline.

Where are the projects in the development cycle?

More than half of the national pipeline has not yet reached the construction stage, according to Hotel News Resource. The early-planning category includes 178 projects and 25,422 rooms, representing 52% of all projects in the pipeline. That category grew by 8% in project count and 12% in room count from a year earlier. Hotel Management reported that this is up from 165 early-planning projects in Q2 2025, 162 in Q2 2024, and 135 in Q2 2023.

Another 103 projects with 13,902 rooms are scheduled to begin construction within the next 12 months, according to Hospitality Net. This represents year-over-year increases of 3% in projects and 7% in rooms. Conversely, the number of hotels currently under construction is 64 properties with 8,550 rooms. Hotel Management noted this continues a decline in recent years, as properties under construction comprise 19% of the total pipeline, down from about 20% in Q2 2025 and roughly 25% in Q2 2024. During the second quarter, construction began on nine projects containing 1,246 rooms.

Which chain scales are driving the growth?

Upper midscale hotels represent the largest segment of Canada’s pipeline by project count, with a record-high 140 projects and 14,298 rooms. According to No Vacancy News, this category accounts for 41% of all projects and recorded year-over-year growth of 11% in projects and 8% in rooms.

The upscale segment follows with 60 projects and 7,955 rooms, while the midscale category has 42 projects and 3,688 rooms. Combined, these three chain scales represent 242 projects and 25,941 rooms, accounting for 70% of the national pipeline. The upper upscale chain scale also reached a record high of 27 projects with 6,446 rooms, and the luxury chain scale reached a record high of 8 projects with 3,360 rooms.

What are the top provinces and cities for development?

Ontario remains the main location for planned hotel development, accounting for 55% of all projects in Canada’s pipeline with 190 projects and 27,627 rooms. British Columbia reached a record high of 77 projects and 11,868 rooms, representing 22% of the national project total, according to Hotel News Resource. Quebec follows with 29 projects and 3,319 rooms. Together, these three provinces account for 296 projects and 42,814 rooms, or 86% of Canada’s pipeline.

Among cities, Toronto leads with 71 projects and 11,495 rooms, claiming 21% of all projects in the country’s pipeline. Niagara Falls reached a record high of 41 projects and 8,054 rooms, representing 12% of the total pipeline. Vancouver reported a record high of 24 projects and 6,890 rooms, accounting for 7% of the total pipeline projects. Together, these three cities account for 136 projects containing 26,439 rooms, representing 39% of the national pipeline.

What is the outlook for new hotel openings?

Lodging Econometrics forecasts steady supply growth through 2028. Developers announced 26 new hotel projects with 3,594 rooms during the second quarter, which Hospitality Net noted is double the level recorded during the comparable period in 2025. Meanwhile, the renovation and conversion pipeline remained stable at 110 projects and 15,402 rooms.

Sixteen hotels with 1,718 rooms opened in Canada during the first half of 2026, with another 22 hotels containing 2,653 rooms scheduled to open before the end of the year.