April 30, 2024 – PORTSMOUTH, NH
The latest Hotel Construction Pipeline Trend Report for Canada from Lodging Econometrics (LE) reveals, at Q1 2024, there are 314 projects/39,628 rooms in the total pipeline. This new record-high in project counts represents an impressive 11% increase in project counts and a 5% increase in room numbers year-over-year (YOY).
In Canada, there was a surge of projects that moved into the under construction stage in 2023. Currently, there are 70 projects/9,151 rooms under construction in Canada, up an impressive 49% and 58% YOY, respectively. Additionally, at the close of the first quarter, there are 80 projects/9,593 rooms scheduled to start construction in the next twelve months while projects and rooms in the early planning stage reached all-time highs of 164 projects/20,884 rooms, increasing 13% and 1% YOY, respectively.
At the Q1 close, hotel construction projects in the province of Ontario account for 59% of the projects and 60% of the rooms in the total pipeline, for new all-time highs of 186 projects and 23,839 rooms. Following Ontario, the largest number of projects and rooms in the pipeline at Q1 is the province of British Columbia with a record 57 projects/8,290 rooms, then Quebec, with 20 projects/2,403 rooms. These three provinces account for 84% of the projects and 87% of the rooms in the total pipeline in Canada at Q1.
In terms of cities, Toronto boasts the highest number of construction projects in the pipeline with a record-high 67 projects totaling 9,323 rooms, followed by Vancouver with 21 projects/4,079 rooms, then Montreal with 15 projects/1,912 rooms. Ottawa-Hull notably reached a new record of 14 projects with 1,992 rooms, increasing 40% and 27% YOY, respectively.
Five new hotels with 704 rooms opened in Canada during the first quarter. An additional 26 new hotels, accounting for 3,050 rooms, are scheduled to open by year-end. According to LE analysts, a total of 31 new hotels and 3,754 rooms will open in 2024, for a 1% growth rate compared to the 26 new hotels/3,344 rooms that opened in 2023. LE analysts forecast new hotel openings in Canada will continue to rise through year-end 2025 with a total of 39 new hotel openings with 3,869 rooms, marking a 1.1% new supply growth rate increase.
