At the close of the third quarter of 2019, analysts at Lodging Econometrics have reported that the total construction pipeline in Canada soared to an all-time high with 289 projects and 38,453 rooms. Construction pipeline projects are up 17 percent and rooms are up 28 percent year-over-year.
Currently, there are 85 projects with 10,337 rooms under construction. Projects scheduled to start construction in the next 12 months have experienced a large 47 percent increase in both projects and rooms, year over year, standing at a record high of 125 projects/14,574 rooms.
Projects in the early planning stage stand at 79 projects with 13,542 rooms. This is an 8 percent increase in projects and a 46 percent increase in rooms. This substantial rise in rooms has increased the average hotel size in the early planning stage from 127 rooms a year ago to 171 rooms currently.
In the third quarter, Canada had 47 new project announcements with 5,760 rooms. This is the largest count that LE has recorded in the country for a single quarter and is a 42 percent increase quarter over quarter.
Through the third quarter, Canada opened 44 new hotels/5,330 rooms with an additional 7 new hotels/641 rooms scheduled to open before year-end. In 2020, the Lodging Econometrics forecast for new hotel openings show 59 new hotels with 6,440 rooms expected to open. In 2021, Canada is forecast to open 70 new hotels/7,714 rooms. If all the new hotels forecast for 2021 come online, it will be the largest count of new hotel openings since Lodging Econometrics began tracking the region in 2008.
Ontario is the most active province for pipeline projects in Canada, which is at a record-high, with 147 projects/19,442 rooms. Next is British Columbia, also at a record high, with 47 projects/6,520 rooms and then Alberta with 31 projects/4,889 rooms. Together these three provinces account for 80 percent of the rooms.
The top cities are led by Toronto with 49 projects/7,525 rooms, at a record high and claiming 20 percent of all the rooms in Canada’s total construction pipeline. Following distantly are Niagara Falls with 14 projects/3,125 rooms, Ottawa with a record 14 projects/2,226 rooms, Vancouver with 14 projects/1,660 rooms, and Montreal with a record 13 projects having 1,773 rooms. These five cities alone account for 42 percent of the rooms in the total pipeline. See https://lodgingeconometrics.com/
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