Canada Hotel Pipeline Hits Record 345 Projects in Q2 2026
Lodging Econometrics reports Canada's hotel pipeline reached 47,874 rooms, with Ontario commanding 55% of all active projects.
The short answer
Canada's hotel construction pipeline reached a record 345 projects and 47,874 rooms in Q2 2026 according to Lodging Econometrics data. Ontario accounts for 55% of all active projects, while upper midscale brands comprise 41% of national development.
The short version
- Canada reached a record construction pipeline of 345 projects and 47,874 rooms in Q2 2026.
- Ontario commands 55% of all planned Canadian hotel projects, led by Toronto's 71 projects.
- Upper midscale properties represent 41% of all pipeline projects, totaling 140 properties.
Canada's hotel construction pipeline reached an all-time high of 345 projects and 47,874 rooms at the close of the second quarter of 2026 [2]. According to Lodging Econometrics data reported by No Vacancy News and Hotel News Resource, early planning drives 52% of national activity, while Ontario alone commands 55% of all planned properties [[2], [3]].
Where does Canada's record pipeline stand by stage of development?
More than half of the national pipeline remains in pre-construction design and review [3]. Projects in early planning expanded to a record-high 178 projects totaling 25,422 rooms, marking an 8% rise in projects and a 12% increase in rooms year-over-year [2]. As Hotel News Resource reported, this single phase accounts for 52% of Canada's total project count [3].
Projects scheduled to break ground within the next 12 months rose to 103 projects containing 13,902 rooms, up 3% by projects and 7% by rooms compared to the second quarter of 2025 [[2], [3]]. Active building sites remain more limited: 64 projects with 8,550 rooms were under construction at the end of the second quarter of 2026 [[2], [3]]. During the quarter itself, developers broke ground on nine projects comprising 1,246 rooms [[2], [3]].
Which provinces show the heaviest project concentration?
Pipeline activity is heavily concentrated across three provinces, which collectively represent 86% of the country's planned hotels [[2], [3]]. According to No Vacancy News, Ontario, British Columbia, and Quebec together account for 296 projects and 42,814 rooms [2].
Ontario leads the country by a wide margin, housing 190 projects and 27,627 rooms, which equals 55% of all projects in the Canadian pipeline [[2], [3]]. British Columbia reached a record-high 77 projects and 11,868 rooms, growing 13% in projects and 24% in rooms year-over-year to secure 22% of national activity [[2], [3]]. Quebec followed with 29 projects and 3,319 rooms, posting year-over-year gains of 32% in projects and 44% in rooms [[2], [3]].
| Province | Pipeline Projects | Pipeline Rooms | National Project Share | Year-over-Year Room Growth |
|---|---|---|---|---|
| Ontario | 190 | 27,627 | 55% | N/A |
| British Columbia | 77 | 11,868 | 22% | +24% |
| Quebec | 29 | 3,319 | 8% | +44% |
| Three-Province Total | 296 | 42,814 | 86% | N/A |
Which metropolitan markets lead city-level development?
Toronto, Niagara Falls, and Vancouver together represent 39% of the national hotel development pipeline, with 136 projects and 26,439 rooms [[2], [3]].
Toronto ranks first nationally with 71 projects and 11,495 rooms, representing 21% of all Canadian pipeline projects [[2], [3]]. Niagara Falls achieved a record-high of 41 projects and 8,054 rooms, expanding 24% by projects and 47% by rooms year-over-year to capture 12% of the national pipeline [[2], [3]]. Vancouver closed the second quarter at a record-high 24 projects and 6,890 rooms, up 26% by projects and 32% by rooms year-over-year, accounting for 7% of national pipeline projects [[2], [3]].
What chain scales dominate developer commitments?
Mid-tier chain scales dominate the national footprint, with the upper midscale, upscale, and midscale segments comprising 242 projects and 25,941 rooms [[2], [3]]. Together, these three tiers make up 70% of Canada's total construction pipeline [[2], [3]].
Upper midscale properties form the largest individual category at a record-high 140 projects and 14,298 rooms, up 11% in projects and 8% in rooms year-over-year to claim 41% of national pipeline projects [[2], [3]]. Upscale developments follow with 60 projects and 7,955 rooms [[2], [3]]. The midscale tier stands at 42 projects and 3,688 rooms, growing 8% by projects and 6% by rooms year-over-year [[2], [3]].
Higher chain scales also posted historic project counts [2]. Lodging Econometrics reported that upper upscale reached a record-high of 27 projects with 6,446 rooms, while the luxury segment set a record-high of 8 projects and 3,360 rooms [[2], [3]].
What do opening forecasts indicate through 2028?
New room supply will enter the Canadian market at an annual pace between 1.2% and 1.4% through 2028 [3]. During the first half of 2026, 16 hotels with 1,718 rooms opened across Canada [3]. Another 22 hotels containing 2,653 rooms are scheduled to deliver before the end of the year, bringing projected full-year 2026 deliveries to 38 hotels and 4,371 rooms for a 1.2% net supply increase [3].
Looking ahead, Lodging Econometrics projects 41 hotel openings totaling 4,583 rooms in 2027, maintaining a 1.2% supply growth rate [3]. In 2028, openings are forecast to accelerate to 46 hotels and 5,281 rooms, lifting supply expansion to 1.4% [3].
Developer interest in new builds doubled during the second quarter of 2026, with 26 project announcements totaling 3,594 rooms compared to the second quarter of 2025 [3]. In parallel, existing properties remain active targets: Canada's renovation and conversion pipeline held steady at 110 projects and 15,402 rooms [3].
Reported by
This article was written from the following reporting. Follow the links for the original coverage.
- [1]Canada Hotel Pipeline Hits Record 345 Projects— hotelnewsresource.com
- [2]Canada Hotel Pipeline Hits Record 345 Projects in Q2— novacancynews.com
- [3]Ontario Drives Record Canadian Hotel Pipeline of 345 Projects— hotelnewsresource.com
Frequently asked
+How large is Canada's total hotel construction pipeline in 2026?
Canada's total hotel construction pipeline reached an all-time record of 345 projects and 47,874 rooms at the end of the second quarter of 2026. This represents a 4% increase in projects and a 7% increase in planned rooms year-over-year.
+Which Canadian province has the most hotel projects in development?
Ontario leads Canada with 190 projects and 27,627 rooms, accounting for 55% of the total national pipeline. British Columbia ranks second with 77 projects, followed by Quebec with 29 projects.
+What hotel chain scale dominates new Canadian development?
Upper midscale hotels represent the largest segment with a record-high 140 projects and 14,298 rooms. The category accounts for 41% of all hotel projects in the country's pipeline.
+How many hotel rooms are currently under active construction in Canada?
As of the end of the second quarter of 2026, there are 64 hotel projects with 8,550 rooms under active construction across Canada. During the second quarter, construction began on nine projects with 1,246 rooms.
+What is the hotel opening forecast for Canada through 2028?
Lodging Econometrics forecasts 38 hotel openings with 4,371 rooms in 2026, 41 hotels with 4,583 rooms in 2027, and 46 hotels with 5,281 rooms in 2028, reflecting supply growth of 1.2% to 1.4% annually.
+How large is Canada's hotel renovation and conversion pipeline?
Canada's hotel renovation and conversion pipeline stands at 110 projects totaling 15,402 rooms, tracked separately from ground-up new construction developments.
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