Canada ends 2022 with record project counts in the early planning stage of the hotel construction pipelineAt year-end 2022, projects presently under construction in Canada stand at 52 projects/6,593 rooms.
PORTSMOUTH, NH – According to the Q4 2022 Hotel Construction Pipeline Trend Report for Canada by Lodging Econometrics (LE), LE analysts report that Canada’s total construction pipeline stands at 267 projects/35,758 rooms, up 2% by projects and 1% by rooms year-over-year (YOY).
At year-end 2022, projects presently under construction in Canada stand at 52 projects/6,593 rooms. Projects scheduled to start construction in the next 12 months stand at 87 projects/12,098 rooms, a 2% increase in projects YOY and a 15% increase in rooms YOY. Projects in the early planning stage are at an all-time high with 128 projects/17,067 rooms, up 11% by projects YOY and 2% by rooms YOY.
Canada’s hotel construction pipeline should remain strong throughout 2023, despite the recent interest rate increase, as building activity and new project announcements remain above pre-pandemic levels. In the fourth quarter, Canada had 24 new project announcements with 3,122 rooms; the highest they’ve been in 13 quarters.
At year-end 2022, combined renovation and conversion projects in Canada reached a record high of 105 projects, accounting for 12,141 rooms. Renovation totals closed the fourth quarter standing at 50 projects/6,080 rooms and conversion totals are at 55 projects/6,061 rooms.
Ontario is the most active province for pipeline projects in Canada at the Q4 2022 close, with 153 projects and a record-high 20,996 rooms. Next is British Columbia with record-high project and room counts of 54 projects/8,211 rooms, and then Quebec with 18 projects/2,318 rooms. Together, these three provinces account for 84% of the projects and 88% of the rooms in Canada’s pipeline.
The top cities in Canada’s hotel construction pipeline, at the Q4 close, are Toronto, with a record project count of 65 projects/9,617 rooms. Following Toronto is Vancouver with 20 projects/3,008 rooms, then Niagara Falls with 13 projects/3,899 rooms.
The top hotel franchise company in Canada’s construction pipeline, at an all-time high, is Marriott International, with 79 projects/10,457 rooms. Hilton Worldwide follows with 64 projects/7,826 rooms, then InterContinental Hotels Group (IHG) with 41 projects/4,153 rooms. These three companies claim 69% of the projects and 63% of the rooms in the total Canada construction pipeline.
The top brands in Canada’s pipeline at the Q4 close are Hilton’s upper midscale Hampton by Hilton brands with 25 projects/2,872 rooms, Marriott’s TownePlace Suites with record high project and room counts of 20 projects/2,022 rooms, and IHG’s Holiday Inn Express with 19 projects/2,053 rooms. Other notable brands in the Canadian hotel construction pipeline are Fairfield Inn by Marriott with 19 projects/1,805 rooms, Home2 Suites by Hilton with 17 projects/1,821 rooms, and Hyatt Place with 11 projects/1,695 rooms.
Canada had 29 new hotels, accounting for 3,213 rooms open in 2022. LE’s forecast for new hotel openings in 2023 anticipates 31 hotels/3,756 rooms will open in Canada, for a 1.1% room supply increase. LE analysts forecast another 1.1% increase in room supply in 2024 with 39 hotels/4,147 rooms expected to open.
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She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.