Pipeline Reaches New High
According to the latest Lodging Econometrics (LE) data, Canada’s hotel development pipeline stood at 355 projects and 49,209 rooms at the close of the third quarter of 2026. The totals were record highs, up 7% in projects and 10% in rooms from a year earlier.
Projects under construction accounted for 69 developments and 9,257 rooms. Another 103 projects, representing 13,620 rooms, were scheduled to begin construction within the next 12 months.
Early planning included 183 projects and 26,332 rooms, up 12% in projects and 18% in rooms year over year. Early planning developments represented 52% of all projects in the national pipeline and 54% of planned rooms.
Construction starts in the third quarter totaled 13 projects and 1,542 rooms, up 63% in projects and 78% in rooms from the third quarter of 2025.
Upper Midscale Segment Leads Development
The upper midscale hotel segment had the most projects in Canada’s pipeline, with 142 projects and 14,397 rooms. The project total was up 11% year over year, while the room count rose 5%. Upper midscale developments made up 40% of projects in the overall pipeline and 29% of planned rooms.
The upscale segment followed with 62 projects and 8,570 rooms. The midscale category recorded 44 projects and 3,807 rooms, the highest project count in that segment.
Together, upper midscale, upscale and midscale properties accounted for 248 projects and 26,774 rooms. These categories represented 70% of all projects in the Canadian pipeline. Their combined project count increased 6% from a year earlier, while rooms increased 4%.
The upper upscale segment also hit a record high at quarter-end, with 31 projects and 7,002 rooms.
Ontario Holds Largest Provincial Share
Ontario remained the largest provincial market for hotel construction, with 190 projects and 27,852 rooms. The province accounted for 54% of projects and 57% of rooms in the national pipeline. Ontario’s room total rose 3% year over year.
British Columbia ranked second with 83 projects and 12,624 rooms. Its project count increased 19% from a year earlier, and its room count rose 28%. Quebec followed with 31 projects and 3,545 rooms, up 19% in projects and 20% in rooms year over year.
Collectively, Ontario, British Columbia and Quebec had 304 projects containing 44,021 rooms. The three provinces accounted for 86% of planned projects and 89% of planned rooms across Canada.
Toronto and Vancouver Lead City Pipeline
Toronto had the largest hotel development pipeline among Canadian cities, with 71 projects and 11,665 rooms. The city accounted for 20% of projects and 24% of rooms in the country’s total pipeline.
Vancouver followed with 45 projects and 8,562 rooms. Its pipeline was up 25% in projects and 44% in rooms from the third quarter of 2025.
Niagara Falls ranked third, with 24 projects and 6,865 rooms. Its room count hit a record high, up 31% year over year, while projects rose 26%.
Together, the three cities accounted for 140 projects and 27,092 rooms. Together, they were up 11% in projects and 19% in rooms from a year earlier, accounting for 39% of all projects and 55% of all rooms in the national pipeline.
Openings and Renovation Activity
Canada recorded 19 new hotel project announcements during the third quarter, totaling 2,335 rooms. Announced projects rose 27% year over year, while the associated room count rose 16%.
The combined renovation and conversion pipeline included 104 projects and 14,717 rooms at the end of the quarter.
During the first nine months of 2026, 23 hotels with 2,526 rooms opened in Canada. Lodging Econometrics forecasts that 13 additional hotels with 1,439 rooms would open in the fourth quarter. That would bring the full-year total to 36 new hotels and 3,965 rooms, increasing national room supply by 1.1%.
For 2027, the firm projected 39 hotel openings with 4,463 rooms, equal to a 1.2% increase in room supply. In 2028, it projected 48 hotel openings and 5,180 rooms, raising supply by 1.4%.