Canada’s hotel construction is likely to continue growing this year after a strong year-end in 2019, according to a report from Lodging Econometrics (LE).
Over last year, the hospitality property industry recorded 96 projects comprising of 12,007 rooms under construction.
LE found that the projects slated to commence construction over the next 12 months will be up by 35%, equivalent to 120 developments and 13,785 rooms. Projects in the planning stage are also at an all-time high at 89 and 14,192 rooms.
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“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,” LE said.
Toronto will remain the hotspot for hotel construction, taking 18% of all the projects across the pipeline.
Canada opened 54 hotels with 6,150 rooms last year. Over the next 12 months, 60 new hotels with a total of 6,208 rooms are expected to open. In 2021, this is expected to climb to 67 hotels and 7,218 rooms.
