Canada’s covid relaxation could lift hotel demand

by | 08 Nov 2022 | Pipeline

Pictured: rendering of Four Points by Sheraton Penticton.

The Government of Canada removed its remaining covid-prompted international traveller restrictions at the beginning of October, leaving the way clear for a hotel build boom.

With tourism demand likely to peak now that testing, quarantine, and isolation requirements for anyone entering Canada have been dropped, we can see that there is already a significant number of hotel projects underway.

Rising pipeline

According to the TOPHOTELPROJECTS database, there are at least 70 high end hotels on the way across the North American country, totalling 12,595 keys.

This is broadly similar to when we last examined the country’s pipeline 18 months ago, when 68 sites comprised 11,204 rooms, though this year’s figures represent a 3% project rise and 12% room uptick.

Segments and schedules

The high end pipeline Is split 75% /25% in favour of four star sites compared to five stars, with individual tallies numbering 53 upscale developments and 17 luxury hotels.

Deliveries will peak next year, with 15 scheduled, while in both 2024 and 2025 another nine properties will complete. Four more sites are due to open by the end of this year, while the remaining 33 either haven’t been assigned a completion date or it’s beyond 2025.

Location and brands

Looking at the city spread, Toronto heads the list with 15 developments, while west coast centre Vancouver is runner up with six. Fellow British Columbia municipality Kelowna rounds out the top three with five sites.

In terms of expanding brands, Hyatt Hotels Corporation’s Hyatt Place leads with at least seven high end Canadian hotel constructions underway, while two Marriott International marques round out the podium places: Courtyard by Marriott with four sites and Four Points by Sheraton with three.

Prominent projects

Typifying the major brands’ projects is the 105-key Four Points by Sheraton Penticton, a full service hotel in British Columbia, will feature an indoor pool, upscale in-house restaurant with a large patio and fitness facilities. Designed for both business and leisure travellers, the site is due to complete in Q3 2023.

Plus Hyatt Place Whitehorse, in the capital of Yukon territory, is set to deliver 100 guestrooms in 2024, marking the first Hyatt-branded hotel in Canada’s north. The Yukon’s Northern Vision Development LP (NVD) is developing the project and will also manage the hotel. Amenities will include eateries numbering the Breakfast Bar, The Market and a full service restaurant, as well as a bar, flexible event spaces and a fitness centre.

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