STR: Canada hotel construction down 8.7% in April
STR’s pipeline data for Canada showed 63 hotel projects accounting for 8,011 rooms in construction as of April 2019. This represents an 8.7% year-over-year decrease in the number of rooms in the final phase of the development pipeline.
While overall room construction is down year over year, STR’s forecast projects that ongoing supply growth will lower occupancy rates for 2019 as a whole and raise the room price ceiling for the country.
A majority of Canada’s rooms in construction are in two segments. Construction activity in one of those segments is up year over year, while it is down in the other.
1. Upper Midscale: 3,081 rooms (+9.3%)
2. Upscale: 2,947 rooms (-16.6%)
Three provinces or territories reported more than 1,000 rooms under construction. Ontario led with 2,631 rooms, which represented 1.9% of the country’s existing supply, followed by Alberta (2,048 rooms, 2.6% of existing supply).
1. Ontario: 2,631 rooms (1.9%)
2. Alberta: 2,048 rooms (2.6%)
3. Quebec: 1,160 rooms (1.5%)
STR provides premium data benchmarking, analytics and marketplace insights for global hospitality sectors. Founded in 1985, STR maintains a presence in 15 countries with a corporate North American headquarters in Hendersonville, Tennessee, an international headquarters in London, and an Asia Pacific headquarters in Singapore. For more information, please visit str.com.
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