CANADA The hotel development pipeline in Canada comprises 206 projects totaling 21,828 guestrooms, according to the December 2010 STR/McGraw Hill Construction Dodge Pipeline Report. This represents a 6.7% year-over-year decrease on a guestroom basis.
Canada’s under-construction pipeline activity has slowed from an expected growth rate of 1.6% last year to 1.5%. “Looking more closely, the upscale segment continues to be the most appealing segment for developers to invest in, as that segment is expected to increase supply by 6.5% (1,839 guestrooms) from projects under construction,” says Lana Yoshii, vice president of content management at STR.
Three segments report increases in the total active pipeline. The midscale with food and beverage segment is up 43.9% with 2,401 guestrooms, while the unaffiliated segment has grown 7.5% with 9,346 guestrooms), and the economy segment is up 2.8% with 777 guestrooms.
The upper-upscale segment is Canada’s only segment with no projects in the active pipeline.