Canadian hotel projects in the construction pipeline posted a 3% year-over-year increase in the second quarter, says a new report.

Altogether, 333 projects with 44,764 rooms were in the construction pipeline, Lodging Economics (LE) reported. The number of rooms under construction jumped 11% from the same period in 2024, according to LE.

Developers made 13 new project announcements (NPAs) in the second quarter and intended to build 1,896 news rooms. Construction started on six new hotels comprising 1,896 rooms.

Ontario, B.C., and Quebec led the way, ranking first to third, respectively, as they accounted for 86% of the projects and 89% of the rooms in the pipeline. In Ontario’s case, the province represented more than half (59%) of the total Canadian projects with 197 totalling 27,776 rooms underway. As a result, Ontario saw a 4% year-over-year increase in projects, while room under construction climbed 15%.

B.C. hit a record-high with 68 NPAs projects worth 9,607 rooms, demonstrating 15% year-over-year growth in projects and a 14% year-over-year increase in rooms. Quebec followed with 22 projects and 2,310 rooms.

In the second quarter of 2025, a total of 68 projects comprising 9,038 rooms were under construction, accounting for 20% of the total pipeline.

Pictured: New Truman-owned hotel project on the Calgary Stampede Grounds that is in Canada’s hotel-construction pipeline.

Rendering: CMLC

City-wise, Toronto led with record-high totals of 74 projects and 12,219 rooms, showing a 9% year-over-year increase in projects and a 28% year-over-year jump in rooms. Vancouver recorded a whopping 57% increase from a year earlier in projects (33) and a 34% rise in rooms (5,473). Niagara Falls, Ont., a tourist mecca, retained third place with 19 projects and 5,236 rooms.

Meanwhile, Canada’s combined hotel renovations and brand conversions hit posted record-high totals of 124 projects and 16,448 rooms, demonstrating a 10% year-over-year increase in projects and a a 20% year-over-year jump in rooms.

Over the next year, hotel-construction starts are expected to climb 25% as developers break round on 100 new projects spanning 12,955 rooms, a 25-year-over-year increase.

LE anticipates 341 Canadian hotel projects (47,426 rooms) will be in the pipeline by year-end 2025. The company expects that 42 new projects, a total of 5,024 rooms, will open this this year.

Pictured: Future hotel under development on the Calgary Stampede grounds.

Rendering: CMLC