Published on : Friday, May 31, 2019
At the close of the first quarter of 2019, the total hotel construction pipeline in Canada remains strong with 264 projects totalling 33,023 rooms as per Lodging Econometrics (LE) report. Construction pipeline projects and rooms are both up by 11 per cent year-over-year (YOY).
The jump in early planning counts YOY is the result of a record number of new projects being announced into the pipeline during the fourth quarter of 2018, some 36 projects (5,380 rooms).
The top provinces in Canada with the most projects in the pipeline are Ontario with 139 projects (17,374 rooms), – a record-high. It was responsible for 52 per cent of the projects in Canada’s pipeline. Next is Alberta with 38 projects (5,821 rooms) and British Columbia with 37projects (4,068 rooms). Together the three provinces account for 81 per cent of Canada’s Pipeline.
The forecast for new hotel openings in 2019 calls for 51 new projects/5,578 rooms to open. In 2020, counts are expected to rise with 62 projects/7,005 rooms forecast to open. Should all these projects and rooms come online, this will be a record high for annualized new hotel openings in Canada.
A driving force of the pipeline’s double-digit growth is the surge in projects in the early planning stage with 80 projects (11,328 rooms), up 48 per cent and 53 per cent YOY, respectively. Currently, there are 93 projects (10,466 rooms) under construction and 91 projects (11,229 rooms) scheduled to start construction in the next 12 months, a record high.
The top brands in Canada’s pipeline are IHG’s Holiday Inn Express with 30 projects (3,109 rooms). Next is Hampton by Hilton with 28 projects (3,240 rooms) and TownePlace Suites by Marriott with 13 projects (1,336 rooms), both reaching record highs.
Other notable brands in the Canadian hotel construction pipeline are Courtyard by Marriott, at a record high, with 12 projects (1,796 rooms), Hyatt Place with 12 projects (1,786 rooms), and Best Western Plus with 12 projects (1,027 rooms).