PORTSMOUTH, NH—Analysts at Lodging Econometrics (LE) report that as of year-end 2019, the total construction pipeline in Canada continued to ascend, hitting an all-time high of 305 projects/39,984 rooms. The pipeline is up an impressive 15% by projects and 20% by rooms, year-over-year (YOY).
At the close of 2019, projects under construction hit record counts with 96 projects/12,007 rooms. Projects scheduled to start construction in the next 12 months, up 36% by projects and 28% by rooms, stand at 120 projects/13,785 rooms, and projects in the early planning stage are also at an all-time high with 89 projects/14,192 rooms.
Canada’s hotel construction pipeline should remain strong and may continue to expand through 2020 as new project announcements also reached record counts in 2019. Further, interest rates are expected to remain stable, unemployment rates are near record lows and inflation is being held in check.
Markets with the most projects in the pipeline continue to be led by Toronto, at an all-time high, with 55 projects/7,608 rooms. Toronto has 18% of all the projects in Canada’s construction pipeline. Distantly following are Montreal, also setting record counts, with 18 projects/2,406 rooms, then Vancouver with 14 projects/1,853 rooms, Niagara Falls with 13 projects/3,655 rooms, and Ottawa with 13 projects/1,976 rooms.
Canada had 54 new hotels/6,150 rooms open in 2019. In 2020, the country is forecast to have 60 new hotels/6,208 rooms open, and 2021 is expected to climb to 67 new hotels/7,218 rooms opening, likely to be the highest counts for this cycle.
The top hotel companies in Canada’s construction pipeline, both at all-time highs, are Marriott International with 64 projects/8,082 rooms and Hilton with 60 projects/7,081 rooms. IHG follows closely with 55 projects/5,288 rooms. These three companies claim 59% of the projects in the total construction pipeline.
The top brands in Canada’s pipeline are IHG’s Holiday Inn Express with 33 projects/3,241 rooms. Next is Hampton by Hilton with 29 projects/3,174 rooms, Hyatt Place with 16 projects/2,421 rooms and Marriott’s TownePlace Suites, at record counts, with 15 projects/1,652 rooms. Other notable brands in the pipeline are Courtyard by Marriott, at an all-time high, with 13 projects/2,020 rooms, and Best Western Plus with 11 projects/982 rooms.