Canada’s hotel construction pipeline reached a record high in the first quarter, says a new report from Lodging Economics.

A total of 331 projects comprising 45,401 rooms were proceeding on the path to construction at the end of Q1 2026, according to the hotel development-intelligence company.

Early planning activity drove the surge, climbing to an all-time high of 176 projects with 24,949 rooms, up 6% and 13% year-over-year, respectively.

“This record-breaking early planning total demonstrates sustained developer confidence and signals robust future growth for Canada’s hotel industry,” said Lodging Econometrics in a news release.

The findings come as Canada’s hotel sector grapples with a supply shortage in the post-pandemic era, particularly in major markets and resort desitinations.

Currently, 64 projects representing 8,125 rooms are under construction, while 91 projects with 12,327 rooms are slated to begin within the next 12 months.

By chain scale, upper mid-scale developments continue to dominate with a record 137 projects and 14,173 rooms, accounting for 41% of the pipeline and rising 5% year-over-year by project count. The mid-scale segment also hit new highs at 44 projects and 3,827 rooms, up 13% and 9%, respectively. Upper upscale and luxury segments likewise reached record project and room totals.

Ontario remains the country’s pipeline leader with 190 projects and 27,567 rooms, representing 57% of projects and 61% of total rooms. British Columbia follows with 68 projects and 9,938 rooms, while Quebec posted 26 projects and 2,971 rooms, up 13% and 17% year-over-year. Together, the three provinces account for 86% of projects and 89% of rooms nationally.

Toronto continues to lead all markets with 71 projects and 11,420 rooms, representing 21% of Canada’s total pipeline. Vancouver ranks second with 33 projects and 5,781 rooms, followed by Niagara Falls with a record 23 projects and 6,820 rooms, up 15% and 21% year-over-year. Combined, the three cities account for 38% of projects and 53% of rooms.

Seven hotels with 917 rooms opened across Canada in the first quarter, with another 32 hotels and 3,713 rooms expected to open by year-end. Lodging Econometrics forecasts a total of 39 new hotels and 4,630 rooms will open in 2026, reflecting a 1.2% growth rate, with openings projected to rise further in 2027 to 51 hotels and 5,666 rooms, representing a 1.5% increase in new supply.

The report comes after a Cushman and Wakefield report showed Canada’s hotel sector posted record revenues of $142.8 per available room in 2025, and the market is poised for more sales transactions in 2026.

Portsmouth, N.H.-based Lodging Econometrics provides user-friendly business development database programs and hotel-development intelligence globally.

Pictured: Future Marriott Autograph Collection hotel now under construction on the Calgary Stampede grounds.

Rendering: CMLC