HENDERSONVILLE, Tennessee—The Canadian hotel development pipeline comprises 183 projects totaling 20,945 rooms, according to the September 2011 STR/McGraw Hill Construction Dodge Pipeline Report. This represents a 6.3-percent decrease in the number of rooms in the total active pipeline compared to September 2010.
“Canadian hotel development continues at a pace to yield total industry supply growth of just over 1 percent in 2011, which is in line with the industry’s trailing five-year annual average,” said Bobby Bowers, senior VP of operations at STR. “Rooms under construction are down slightly from the same time last year, and final planning rooms are up, driven by Upper Midscale projects. Similar to the U.S. trend, Upscale and Upper Midscale rooms dominate the number of rooms under construction in Canada.”
Among the Chain Scale segments, the Upper Midscale segment reported the largest increase in rooms in the total active pipeline with a 31.7-percent increase and 5,589 rooms, followed by the Luxury segment with a 19.7-percent increase and 711 rooms. The Midscale segment (-81.1 percent with 347 rooms) and the Economy segment (-69.2 percent with 295 rooms) experienced the largest decrease in rooms in the total active pipeline.
The Upper Midscale segment (+75.7 percent with 1,739 rooms) and the Luxury segment (+72.7 percent with 461 rooms) ended the month with the largest increases in rooms under construction. The Midscale segment was the only segment to report a decrease in rooms under construction of more than 50 percent, falling 72.2 percent with 221 rooms.
Canadian pipeline by Chain Scale segment (number of rooms & percent change September 2011 vs. September 2010)
* Includes those projects In Construction, Final Planning and Planning phases.
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