Canada’s hotel construction pipeline closes 2023 with a 10% year-over-year project increase
PORTSMOUTH, NH – According to the year-end Lodging Econometrics (LE) Construction Pipeline Trend Report for Canada, the country ended 2023 at 294 projects/38,396 rooms, a mere 11 projects short of the country’s peak of 305 projects achieved in Q4 2019. Canada’s pipeline is up 10% by projects and 7% by rooms, year-over-year (YOY).
At the close of 2023, there are 66 projects/8,998 rooms under construction, up 27% by projects and 36% by rooms YOY. Projects scheduled to start construction within the next 12 months are at 85 projects/9,810 rooms, while those in early planning are at 143 projects/19,588 rooms, up 12% by projects and 15% by rooms YOY.
New project announcements (NPAs) in the country were at their highest at Q4 2023 since Q3 2021, with 37 projects/4,191 rooms, up 35% by projects and 26% by rooms. LE analysts expect Canada’s hotel construction pipeline to remain strong and continue to expand through 2024 as construction starts in the country increased 44% YOY by projects and 49% by rooms at the close of Q4. Upper midscale projects account for nearly 50% of the projects in the total pipeline at Q4 with record-high counts of 132 projects and 13,860 rooms. Upper upscale projects in Canada also reached record-high project and room counts, with 20 projects/4,606 rooms at the end of 2023.
Accounting for 59% of the projects and 60% of the rooms in Canada’s total pipeline, the province of Ontario continues to lead with the largest number of projects in the pipeline at Q4 with all-time high counts of 173 projects/23,112 rooms. British Columbia follows with 54 projects/7,893 rooms, then the province of Quebec with 22 projects/2,674 rooms, and the province of Alberta with 17 projects/1,774 rooms.
Cities in Canada with the most projects in the pipeline continue to be led by Toronto with a record 65 projects/9,391 rooms. Distantly following are Vancouver with record high totals of 23 projects/4,317 rooms, then Montreal with 16 projects/2,123 rooms, and Niagara Falls with 11 projects/3,999 rooms.
Canada had 25 new hotels with 3,278 rooms open in 2023. In 2024, LE forecasts that 29 new hotels/3,698 rooms will open. LE is forecasting a slight increase in Canada’s growth rate from 0.9% at the end of 2023 to 1.0% in 2024 and again in 2025 to 1.1% with 40 new hotels/4,013 rooms expected to open by year-end.
The article Canada’s hotel construction pipeline closes 2023 with a 10% year-over-year project increase first appeared in TravelDailyNews International.