Canada’s Hotel Construction Boom Shatters Records with a 13% Year-Over-Year Surge in Q4 2024

Published on January 30, 2025

Canada’s hotel construction hits a record high with 333 projects and 43,413 rooms, driving unprecedented growth across provinces and key market segments.

The latest Q4 2024 Canada Construction Pipeline Trend Report from Lodging Econometrics (LE) highlights a significant surge in hotel development across the country, setting new records. The total hotel construction pipeline has expanded to an unprecedented 333 projects, totaling 43,413 rooms, reflecting a 13% year-over-year (YOY) increase for both projects and room counts.

As of year-end 2024, 76 projects with 10,442 rooms are actively under construction—marking a 15% rise in projects and a 16% jump in room count compared to the previous year. Additionally, 87 projects with 11,698 rooms are scheduled to break ground within the next 12 months, representing a modest 2% growth in projects but a substantial 19% increase in room volume YOY. The early planning phase has also experienced a notable boost, closing Q4 with a 19% rise in projects and 9% growth in room count, reaching 170 projects and an all-time high of 21,273 rooms.

Chain Scale Trends: Upper Midscale Leads Development

When categorized by chain scale, upper midscale hotels dominate the pipeline with 132 projects totaling 14,039 rooms, accounting for 40% of total projects and 32% of room inventory. The upper upscale segment follows with 62 projects and 8,570 rooms, while the upscale category has reached new highs with 25 projects and 5,591 rooms.

Ontario Maintains Its Lead in Provincial Hotel Development

Ontario continues to be the powerhouse of hotel construction, closing Q4 2024 with a record-setting 200 projects comprising 26,976 rooms. This reflects an impressive 16% YOY growth in projects and a 17% rise in room count, solidifying its position as the dominant region, making up 60% of Canada’s total development pipeline.

Other notable provinces include:

• British Columbia: 59 projects / 8,480 rooms
• Quebec: 24 projects / 2,714 rooms
• Manitoba: Record-breaking 14 projects / 1,432 rooms

Canada’s Top Hotel Development Markets

Among Canadian cities, Toronto leads with an all-time high of 70 projects comprising 10,053 rooms, making up 21% of the nation’s total hotel pipeline. Other cities experiencing historic growth include:

• Vancouver: 25 projects / 4,375 rooms
• Niagara Falls: 20 projects / 5,652 rooms
• Montreal: 18 projects / 2,199 rooms
• Ottawa-Hull: Record-high 14 projects / 1,991 rooms

Surge in Hotel Renovations, Brand Conversions & New Project Announcements

The sector is also seeing record-breaking renovation and brand conversion activity. Hotel conversions hit an all-time high of 83 projects with 8,218 rooms, while total renovations and conversions surged to 120 projects, comprising 14,974 rooms, reflecting a 10% increase in projects and an 18% rise in room count YOY.

New project announcements (NPAs) remained strong in Q4, with 36 projects and 5,057 rooms added to the pipeline.

Hotel Openings & Future Supply Growth

Throughout 2024, Canada saw the opening of 15 new hotels, adding 1,478 rooms. Looking ahead, LE forecasts 43 new hotel openings with 5,321 rooms in 2025, continuing the country’s steady supply growth. The trend is expected to persist into 2026, with another 43 hotels bringing 6,547 additional rooms to the market.

With hotel construction booming across Canada, the industry is on track for sustained expansion, driven by record-breaking project pipelines, strong new developments, and continued investment in renovations and conversions.