According to the Q2 2026 Canada Hotel Construction Pipeline Trend Report from Lodging Econometrics, Canada’s hotel construction pipeline is significantly larger than it was in each of the past three second quarters. The growth, however, is increasingly weighted toward early planning and projects scheduled to start within the next 12 months rather than hotels already under construction.
By the Numbers
At Q2 2026, Canada reached a record high 345 hotels with 47,874 rooms in the total pipeline, up from 333 hotels with 44,764 rooms in Q2 2025, 322 hotels with 40,297 rooms in Q2 2024 and 275 hotels with 37,359 rooms in Q2 2023. This quarter’s pipeline increased 4 percent increase in projects and a 7 percent in rooms year over year.
Projects in early planning reach a record-high of 178 hotels with 25,422 rooms at the Q2 close, up 8 percent by projects and 12 percent by rooms year over year, and now account for 52 percent of the total pipeline. This is up from 165 early-planning projects in Q2 2025, 162 in Q2 2024 and 135 in Q2 2023, suggesting long-term confidence in the country’s hospitality sector.
Similarly, projects scheduled to start construction in the next 12 months stand at 103 hotels with 13,902 rooms, up 3 percent by projects and 7 percent by rooms year over year. On the flip side, 64 hotels with 8,550 rooms are currently under construction across the country, continuing a decline in recent years: The 64 properties comprise 19 percent of the total pipeline, down from 68 of 333 projects in Q2 2025 (about 20 percent of the pipeline) and 80 of 322 in Q2 2024, roughly 25 percent. (Nine hotels with 1,246 rooms started construction during the quarter.)
By chain scale, the largest number of projects in Canada’s total pipeline at the Q2 close include the upper midscale segment, which reaches a record-high of 140 hotels with 14,298 rooms, up 11 percent by projects and 8 percent by rooms year over year and accounting for 41 percent of the projects in the total pipeline. The upscale chain scale follows with 60 hotels and 7,955 rooms, and the midscale segment stands at 42 hotels with 3,688 rooms, up 8 percent by projects and 6 percent by rooms year over year. Together, these top three chain scales by project count represent 242 hotels with 25,941 rooms, accounting for 70 percent of the total pipeline. The upper upscale chain scale also reaches a record-high at Q2, closing the quarter with 27 hotels with 6,446 rooms, while the luxury chain scale reaches a record-high of 8 hotels with 3,360 rooms.
Top Markets
Provinces with the most projects in the pipeline in Canada at Q2 continue to be led by Ontario, which accounts for 55 percent of the projects in the total pipeline with 190 hotels with 27,627 rooms. British Columbia reaches a record-high of 77 hotels with 11,868 rooms, up 13 percent by projects and 24 percent by rooms year over year, accounting for 22 percent of the total pipeline projects. Quebec follows with 29 hotels and 3,319 rooms, up 32 percent by projects and 44 percent by rooms year over year. Together, these three provinces account for 296 hotels with 42,814 rooms, representing 86 percent of the total pipeline.
The top cities in Canada at the Q2 close are led by Toronto with 71 hotels and 11,495 rooms, claiming 21 percent of all the projects in Canada’s total construction pipeline. Vancouver reaches a record-high of 24 hotels with 6,890 rooms, up 26 percent by projects and 32 percent by rooms year over year, accounting for 7 percent of the total pipeline projects. Niagara Falls reaches a record-high of 41 hotels with 8,054 rooms, up 24 percent by projects and 47 percent by rooms year over year, representing 12 percent of the total pipeline. Together, these three cities account for 136 hotels with 26,439 rooms, representing 39 percent of the total pipeline.
Looking Ahead
New project announcements double year over year, at Q2, and reach 26 hotels with 3,594 rooms. The renovation and conversion pipeline remains steady and stands at 110 hotels with 15,402 rooms.
Sixteen new hotels with 1,718 rooms opened in Canada during the first half of 2026, with an additional 22 new hotels with 2,653 rooms scheduled to open before year-end. LE’s total new hotel openings forecast for 2026 predicts 38 new hotels and 4,371 rooms will open by year-end, representing a 1.2 percent supply growth rate.
In 2027, LE analysts forecast 41 new hotels with 4,583 rooms to open, for a 1.2 percent supply growth rate. LE’s newly released 2028 New Hotel Openings Forecast for Canada anticipates 46 new hotels with 5,281 rooms will open for a 1.4 percent supply growth rate.