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Hotel Construction Pipeline in Canada is Up; Toronto and Vancouver with Impressive Pipelines at Q2 2023

August 8, 2023
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Hotel Construction Pipeline in Canada is Up; Toronto and Vancouver with Impressive Pipelines at Q2 2023
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Lodging Econometrics

August, 7 2023

Lodging Econometrics;

As seen in the recently released Canada Construction Pipeline Trend Report from Lodging Econometrics (LE), the total construction pipeline in Canada continued to expand at the close of the second quarter with 275 projects/37,359 rooms, up 5% by projects and rooms year-over-year (YOY).

Analysts at LE report that, at the Q2 close, projects presently under construction in Canada stand at 52 projects/7,021 rooms. Projects scheduled to start construction in the next 12 months are at 88 projects/10,086 rooms. Early planning has the most substantial shift in projects YOY, showing a 30% increase by projects and a 42% increase by rooms YOY with 135 projects/20,252 rooms. This sharp increase in early planning is standard late-cycle activity.

The top provinces in Canada with the most projects in the pipeline at the end of the quarter are dominated by Ontario at 159 projects and a record 22,027 rooms. Next is British Columbia with 52 projects/8,434 rooms, and then Quebec, with 22 projects/2,480 rooms. Together, these three provinces account for 85% of the projects and 88% of the rooms in Canada’s total pipeline. Distantly following are Alberta, with 18 projects/1,832 rooms, and Saskatchewan, with 7 projects/674 rooms.

The top five cities in Canada with the largest pipelines, at the Q2 close, are led by Toronto with 62 projects/9,166 rooms, claiming 25% of all the rooms in the country’s total pipeline, and Vancouver with record-high project and room counts of 23 projects/3,634 rooms. Following are Montreal with 15 projects/1,805 rooms, Niagara Falls with 13 projects/4,712 rooms, and Ottawa-Hull with 9 projects/1,453 rooms.

Top hotel companies in Canada’s construction pipeline are Marriott International (Marriott), leading with 75 projects/10,059 rooms, followed by Hilton Worldwide (Hilton) with 66 projects/8,119 rooms, and IHG Hotels & Resorts (IHG) with 39 projects/4,014 rooms. These three companies make up 65% of the projects and 59% of the rooms in the total pipeline. The largest brands in the pipeline for each of these companies are the Hampton by Hilton brands with 25 projects/2,910 rooms, Marriott’s TownePlace Suites with 19 projects/1,935 rooms, and IHG’s Holiday Inn Express with 17 projects/1,826 rooms.

Other notable brands in the Canadian pipeline are Marriott’s Fairfield Inn with record project and room totals of 19 projects/1,805 rooms, and Home2 Suites by Hilton with 16 projects/1,699 rooms.

In the first half of 2023, 12 new hotels/1,637 rooms opened in Canada with an additional 16 new hotels/1,808 rooms scheduled to open before year-end, for a 1.0% growth rate. 2024 is forecast to see 33 new hotels/3,951 rooms open and 2025 will have 43 new hotels/4,537 rooms open, for a 1.1% and 1.2% growth rate, respectively.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : HotelNewsResource – https://www.hotelnewsresource.com/article127587.html

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