At year-end 2025, the total pipeline reached 332 projects representing 45,429 rooms, reflecting a 5% increase in rooms year-over-year.
Projects under construction totaled 70 projects with 9,189 rooms. Projects scheduled to start construction within the next 12 months reached 90 projects comprising 12,614 rooms, marking year-over-year growth of 3% by projects and 8% by rooms.
Early planning activity reached a record-high level, with 172 projects accounting for 23,626 rooms. This represents an increase of 11% by rooms and 1% by projects compared with the previous year.
Construction starts demonstrated strong performance in Q4 2025, rising 60% year-over-year to 16 projects and 2,254 rooms. This marked the highest number of construction starts recorded since Q4 2023.
By chain scale, upper midscale hotels continued to dominate the pipeline, accounting for 130 projects and 13,548 rooms. This segment represents 39% of total projects and 30% of total rooms in development.
The luxury and upper upscale segments reached record-high project and room totals by the end of Q4 2025. The midscale segment also recorded strong growth, increasing 11% by projects and 10% by rooms year-over-year to 42 projects and 3,754 rooms, the highest room count on record for this category.
Ontario remained the leading province for hotel development, with 189 projects and 27,039 rooms, accounting for 57% of Canada’s total pipeline projects.
British Columbia recorded notable growth, reaching 69 projects and 10,171 rooms. This represents increases of 17% by projects and 20% by rooms year-over-year, accounting for 21% of the national pipeline.
Quebec also posted year-over-year gains, with 27 projects and 3,106 rooms, reflecting growth of 13% by projects and 14% by rooms.
At the city level, Toronto led the pipeline with 74 projects and 12,170 rooms, representing 22% of total pipeline projects nationwide and a 21% increase in rooms year-over-year.
Vancouver recorded strong expansion, reaching 34 projects and 5,966 rooms, with growth of 36% by both projects and rooms. Niagara Falls followed with 20 projects and 5,420 rooms.
New project announcements reached a record-high rooms total in Q4 2025, with 29 projects and 5,783 rooms, reflecting a 14% increase in rooms year-over-year.
Combined hotel renovations and brand conversions totaled 119 projects comprising 16,432 rooms, marking a 10% increase in rooms compared with the previous year.
During 2025, Canada recorded the opening of 40 hotels with 4,744 rooms, representing a 1.3% increase in supply. The outlook for 2026 anticipates 40 new hotels with 4,944 rooms, maintaining a similar growth rate.
For 2027, forecasts indicate 49 new hotel openings adding 5,501 rooms to Canada’s hotel supply, corresponding to a projected 1.5% growth rate.
