Canada’s Hotel Construction Pipeline Remains Strong With Double Digit Increases Year-Over-Year

/Canada’s Hotel Construction Pipeline Remains Strong With Double Digit Increases Year-Over-Year

Canada’s Hotel Construction Pipeline Remains Strong With Double Digit Increases Year-Over-Year

|2019-05-28T14:21:24-04:00May 28th, 2019|

May 28, 2019 – PORTSMOUTH, NH – Analysts at Lodging Econometrics (LE) report that at the close of the first quarter of 2019, the total construction pipeline in Canada remains strong with 264 projects/33,023 rooms. Construction pipeline projects and rooms are both up an impressive 11% year-over-year (YOY).

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% and 53% 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 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 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.

The top provinces in Canada with the most projects in the pipeline are Ontario with 139 projects/17,374 rooms, at a record-high and responsible for 52% 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% of Canada’s Pipeline.

The top five cities within these three provinces starts with Toronto with 48 projects/6,570 rooms; at a record high and claiming 18% of all the projects in Canada’s total construction pipeline. Following distantly is Vancouver with 12 projects/1,448 rooms, Edmonton with 11 projects/1,735 rooms, Calgary with 11 projects/1,239 rooms, and Ottawa with 10 projects/1,684 rooms. These five cities account for 35% of the total pipeline.

The top franchise companies in Canada's construction pipeline are Hilton Worldwide with 56 projects/6,658 rooms, followed closely by Marriott International with 52 projects/6,788 rooms and InterContinental Hotels Group (IHG) with 46 projects/4,508 rooms. These three franchise companies claim 58% of the projects in the total pipeline.

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 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.

About Lodging Econometrics

Lodging Econometrics is the leading provider of global hotel intelligence. Combining unparalleled industry experience, a real-time pulse on market trends and extensive knowledge of key decision-makers, LE delivers actionable business development programs for hotel franchise companies looking to accelerate their brand growth, hotel ownership and management companies seeking to expand their real estate portfolios, and lodging industry vendors wanting to increase their sales. LE’s programs turn a client’s business goals into opportunities that advances their competitive advantage. 

Contact: Colleen Brennan

[email protected]/+1 603.427.9544

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