Canada Hospitality Real Estate - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The canada hospitality real estate market size is expected to grow from USD 51.23 billion in 2025 to USD 53.06 billion in 2026 and is forecast to reach USD 63.25 billion by 2031 at 3.57% CAGR over 2026-2031. This report is Segmented by Property Type (Hotels, Resorts & Spas, Others), by Type (Chain Hotels, Independent Hotels), by Asset Class (Affordable/Budget, Midscale, Luxury), and by Geography (Ontario, Quebec, British Columbia, Alberta, Rest of Canada). The Market Forecasts are Provided in Terms of Value (USD).

Canada Hospitality Real Estate Market Trends and Insights

Population Growth and Tourism Recovery Lifting Occupancy and ADR

Immigration added a record 1.3 million residents in 2024, and domestic overnight trips reached 105.6 million, up 8.8% year-over-year, directly supporting hotel demand. Accommodation revenue already sat 9.6% above 2019 by 2022, and Q4 2024 lodging consumption advanced 2.6% quarter-over-quarter. Although international arrivals remain 12% below 2019, ongoing visa-processing gains suggest more upside. Average daily rates climbed 2.9% in Q1 2025 despite a marginal occupancy dip, underscoring pricing power in capacity-tight metros. New event infrastructure, such as Calgary’s expanded BMO Centre, layers incremental group demand for nearby rooms.

U.S. and International Demand Buoyed by Weaker CAD and Air Capacity Rebuild

The CAD traded between 1.35 and 1.44 per USD through 2024-2025, making Canada cost-competitive for Americans and long-haul visitors. U.S. travelers logged 23.5 million trips in 2024, and international air capacity exceeded 2019 levels in four straight quarters. Europe and Asia arrivals each rose more than 8% year-over-year in August 2024, cushioning a slide in Canadian outbound travel. Leisure and event-driven trips, including high-profile concerts and sports tournaments, funneled spend into hotels across Toronto, Vancouver, and Ottawa. That inbound tailwind directly lifts urban RevPAR, given the concentration of international visitors in gateway markets.

High Financing Costs and Tighter Underwriting Slowing Transactions

The overnight rate eased to 2.25% by December 2025, yet five- and ten-year yields remain 100 basis points above pre-2022 norms, sustaining higher debt-service burdens. OSFI’s November 2024 notice tightened provisioning rules, compelling lenders to demand more equity and stronger sponsor track records. Morguard’s sale of 14 hotels for USD 410 million typifies landlords reallocating capital to less-risky sectors. Development leverage has fallen, often capping at 55% loan-to-cost, slowing ground-up starts. This tighter capital climate drags on the Canada hospitality real estate market expansion pace despite healthy demand fundamentals.

Other drivers and restraints analyzed in the detailed report include:

• Extended-Stay, Select-Service, and Limited-Service Formats Showing Resilient Margins
• Urban Repositioning - Office/Retail Conversions and Mixed-Use Projects - Expanding Supply
• Construction Inflation, Supply-Chain Delays, and Permitting Complexity Elevating Capex and Timelines

Segment Analysis

Hotels captured 79.65% of 2025 revenue in the Canada hospitality real estate market, reflecting their extensive footprint in every major urban corridor. Revenue comes from a balanced corporate, leisure, and group mix, enabling chains to spread fixed costs across high-occupancy seasons. Branded operators continue to refurbish lobbies into co-working lounges, monetizing non-room square footage and increasing ancillary spend. Resorts & spas, although representing a smaller base, are forecast to expand at a 4.02% CAGR through 2031, outstripping the broader Canada hospitality real estate market as wellness tourism gains mainstream traction.

Investor interest pivots toward experience-rich properties such as Therme Canada’s Ontario Place redevelopment, which layers water-park, botanical, and thermal attractions under one roof. Legacy icons like Fairmont Chateau Lake Louise add eco-friendly thermal facilities to secure year-round occupancy premiums. Tight land availability near national parks and lakes protects ADR, while brands pursue asset-light management agreements to cap downside. Overall, hotels will keep dominating transaction volume, yet resorts are tipped to deliver higher RevPAR growth as affluent travelers prioritize holistic wellness experiences.

Complete Report Scope:

• By Property Type
  • Hotels
  • Resorts & Spas
  • Others (Serviced Apartments, Boutique Inns, etc.)
• By Type
  • Chain Hotels
  • Independent Hotels
• By Asset Class
  • Affordable / Budget
  • Midscale
  • Luxury
• By Province
  • Ontario
  • Quebec
  • British Columbia
  • Alberta
  • Rest of Canada

List of Companies Covered in this Report:

• Brookfield Asset Management
• InnVest Hotels
• Westmont Hospitality Group
• Superior Lodging Corp
• Coast Hotels
• Fairmont Raffles Hotels International
• Marriott International (Canada)
• Hilton Worldwide (Canada)
• IHG Hotels & Resorts (Canada)
• Choice Hotels Canada
• Sunray Group
• Manga Hotels
• Colliers Hotels
• Hyatt Hotels Corporation (Canada)
• Groupe Germain Hotels
• Sandman Hotel Group
• Silver Hotel Group
• Crescent Hotels & Resorts Canada
• Atlific Hotels
• SilverBirch Hotels & Resorts
• Canalta Hotels

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support