Summary: Canada’s hotel pipeline reached a record 332 projects and 45,429 rooms at the end of 2025, with strong activity in Ontario and British Columbia and major city hotspots including Toronto, Vancouver and Niagara Falls.

Canada hotel pipeline data at the close of 2025 shows a surge in accommodation development that will expand options for visitors in 2026 and 2027. The national pipeline stood at 332 projects comprising 45,429 rooms, a 5 percent year‑on‑year increase in total room count and the strongest level recorded in the current cycle.

Record pipeline and construction momentum

At the end of 2025, 70 projects with 9,189 rooms were under active construction, while a further 90 projects accounting for 12,614 rooms were scheduled to break ground within the next 12 months. Early‑stage planning was particularly busy, with 172 projects and 23,626 rooms on drawing boards, representing an 11 percent increase in planned room counts year‑on‑year. Construction starts rose sharply as well, climbing 60 percent from the previous year to 16 projects and 2,254 rooms — the highest reading since late 2023.

  • Total pipeline: 332 projects, 45,429 rooms (5% year‑on‑year room growth)
  • Under construction: 70 projects, 9,189 rooms
  • Planned to start within 12 months: 90 projects, 12,614 rooms
  • Early planning: 172 projects, 23,626 rooms (11% room growth)
  • Construction starts: 16 projects, 2,254 rooms (60% increase year‑on‑year)

Chain scales: practical options and rising luxury supply

Upper midscale properties form the largest share of projects, while both luxury and upper‑upscale tiers hit record project and room counts, signalling growing demand for higher‑end stays. Midscale development also reached new highs, broadening choices for value‑focused travellers.

  • Upper midscale: 130 projects, 13,548 rooms (39% of projects, 30% of rooms)
  • Luxury and upper‑upscale: record highs in project and room counts (no consolidated figure provided)
  • Midscale: 42 projects, 3,754 rooms (projects +11% and rooms +10% year‑on‑year)

Ontario and British Columbia lead development

Ontario remains the dominant province for hotel development, while British Columbia is the second‑largest growth market. Quebec is also showing double‑digit annual growth in projects as visitors increasingly combine urban and regional itineraries.

  • Ontario: 189 projects, 27,039 rooms (57% of national pipeline)
  • British Columbia: 69 projects, 10,171 rooms (projects +17%, rooms +20% year‑on‑year)
  • Quebec: 27 projects, 3,106 rooms (double‑digit annual growth)

City hotspots: Toronto, Vancouver and Niagara Falls

Major urban and tourist centres are capturing a large share of the new supply, with Toronto leading city rankings by project and room counts. Vancouver’s pipeline is expanding rapidly, while Niagara Falls is preparing to host increased visitor volumes with a substantial number of projects.

  • Toronto: 74 projects, 12,170 rooms (22% of national pipeline; rooms +21% year‑on‑year)
  • Vancouver: 34 projects, 5,966 rooms (projects and rooms +36% year‑on‑year)
  • Niagara Falls: 20 projects, 5,420 rooms

Beyond new builds, owners are accelerating renovations and brand conversions to meet changing guest expectations. Renovation and conversion activity accounted for 119 projects and 16,432 rooms, with room volumes up 10 percent year‑on‑year. Q4 2025 also saw a record 29 new project announcements representing 5,783 rooms, up 14 percent by rooms.

New hotel construction site in a Canadian city with cranes and building frames, showing growth in hotel development
New hotel projects and conversions are increasing accommodation capacity in Canadian cities and tourist regions

Support for national tourism ambitions

Industry and government strategies frame this development wave as part of a broader plan to grow visitor spending and diversify tourism across regions and seasons. Destination Canada’s outlook links expanded accommodation capacity to rising tourism revenues, with projections indicating total tourism receipts could reach around 160 billion Canadian dollars by 2029–2030. Analysts expect supply to increase modestly, forecasting roughly 1.5 percent growth in 2026 and 2.1 percent in 2027.

What this means for travellers and the industry

The expanding hotel pipeline should make it easier for visitors to find last‑minute rooms, choose properties across a wider price range and experience upgraded facilities. For the industry, a steady increase in supply — combined with renovations and new brand entries — may ease peak‑period pressure while supporting destination growth. So what? Travellers can expect more choices and potentially greater availability in 2026–27, while operators and destinations will need to balance growth with occupancy and service quality to sustain long‑term performance.