Travel data from Canada shows them finishing 2022 with record numbers of projects in the early planning stages of the hotel construction pipeline. The number of projects that will start construction within the next 12 months is 87, which represents a 2% increase in projects and a 15% increase for rooms YOY.
The number of projects in the early planning stages is at an all-time high, with 128 projects/17.067 rooms, an increase of 11% by projects and 2% respectively, and Canada’s hotel construction pipeline should continue to grow through 2023, despite recent interest rate increases. Building activity and new project announcements are still above pre-pandemic levels.
Canada had 24 new announcements for the fourth quarter with 3,122 rooms, the highest number in 13 quarters. The fourth quarter saw 50 renovation projects with 6,080 rooms, while conversions totals were at 55 projects/6.061 rooms. Ontario is the most active province in Canada for pipeline projects at the Q4 2022 closing, with 153 projects, and a record-breaking 20,996 rooms. British Columbia is next with 54 projects and 8,211 rooms. Quebec has 18 projects and 2,318 rooms. These three provinces together account for 84% and 88% respectively of Canada’s projects and rooms.
At the Q4 close, Toronto has a record 65 projects/9 617 rooms. Toronto is followed by Vancouver, which has 20 projects/3.008 rooms, and Niagara Falls, which has 13 projects/3.899 rooms. Marriott International is the top hotel franchise company in Canada, with 79 projects/10.457 rooms. Hilton Worldwide is next with 64 projects/7.826 rooms and InterContinental Hotels Group with 41 projects/4.153 rooms.
These three companies account for 69% of Canada’s projects and 63% each of the rooms. Fairfield Inn by Marriott has 19 projects/1.805 rooms, Home2 Suites and Hilton has 17 projects/1.821 rooms, Hyatt Place has 11 projects/1.695 rooms, and Canada had 29 new hotels. Canada will have 3,213 rooms open by 2022. According to LE, 31 new hotels/3,756 rooms are expected to open in Canada in 2023, which is 1.1% more than the current forecast. LE analysts predict another 1.1% rise in room supply in 2024, with 39 hotels/4.147 rooms expected to open in Canada.