According to the Q4 2025 Canada Construction Pipeline Trend Report by Lodging Econometrics, Canada’s total construction pipeline stands at 332 hotels and 45,429 rooms, achieving a 5 percent increase in rooms year over year.
At year-end 2025, projects under construction in Canada stand at 70 hotels and 9,189 rooms. Projects scheduled to start construction anytime in the next 12 months total 90 hotels and 12,614 rooms, reflecting growth of 3 percent by projects and 8 percent by rooms year over year. Projects in early planning reached a record-high rooms total of 23,626 rooms across 172 projects, up 11 percent by rooms and 1 percent by projects year over year. Construction starts demonstrated remarkable strength, increasing 60 percent year over year and reaching 16 hotels and 2,254 rooms, the highest number of starts seen since Q4 2023.
By chain scale, upper midscale hotels continue to lead with 130 hotels and 13,548 rooms, representing 39 percent of the total projects and 30 percent of rooms in the pipeline. The luxury and upper upscale segments achieved record-high project and room totals at the end of Q4 2025. The midscale segment showed robust growth of 11 percent by projects and 10 percent by rooms year over year, totaling 42 hotels and 3,754 rooms, also a record-high room count for this chain scale.
Top Markets
Ontario continues to lead provincial development with 189 hotels and 27,039 rooms, representing 57 percent of the country’s total pipeline projects. British Columbia demonstrated impressive growth at the Q4 close, reaching 69 hotels and 10,171 rooms, up 17 percent by projects and 20 percent by rooms year over year, and accounting for 21 percent of the country’s total pipeline projects. Quebec also showed strong performance with 27 hotels and 3,106 rooms, up 13 percent by projects and 14 percent by rooms year over year.
The top cities in Canada’s construction pipeline are led by Toronto with 74 hotels and 12,170 rooms, representing 22 percent of the country’s total pipeline projects, with growth of 21 percent by rooms year over year. Vancouver achieved exceptional growth, reaching 34 hotels and 5,966 rooms, up 36 percent by both projects and rooms year over year. Niagara Falls follows with 20 hotels and 5,420 rooms.
New project announcements achieved a record-high rooms total at the Q4 2025 close with 29 hotels and 5,783 rooms, up 14 percent by rooms year over year. Combined hotel renovations and brand conversions totaled 119 hotels and 16,432 rooms, reflecting a 10 percent increase in rooms year over year.
In 2025, 40 hotels with 4,744 rooms opened across Canada, representing a 1.3 percent supply growth rate. LE is forecasting 40 new hotels with 4,944 rooms to open in 2026, representing another 1.3 percent growth rate. The forecast for 2027 anticipates 49 new hotels opening, bringing 5,501 additional rooms to Canada’s room supply, for a 1.5 percent growth rate.