Canada Hotels Market Size & Trends
The size of the Canada hotels market was estimated at USD 42.34 billion in 2024 and is anticipated to grow with a CAGR of 8.5% during 2025 to 2030. The Canadian hotel market is a changing and developing industry that is influenced by macroeconomic factors, tourism patterns, and changes in traveler aspirations. Over the past two decades, the industry has experienced cycles of growth and disruption, notably impacted by the global financial crisis of 2008 and more recently by the COVID-19 pandemic. Despite these challenges, the sector has demonstrated remarkable resilience. Following the downturns, periods of recovery have been marked by increased investment, rising demand from both leisure and corporate travelers, and renewed confidence in the tourism industry.
In 2024, Canada witnessed a strong rebound in foreign tourism, with more than 25 million foreign visitors, a strong recovery close to pre-pandemic levels. This was driven by the nation's image as a secure, environmentally-friendly destination with varied experiences ranging from luxury city stays to nature-exploring adventures. Major cities such as Toronto, Vancouver, and Calgary registered increased hotel occupancy, supported by events and vacation travel. Concurrently, boutique and environmentally-friendly accommodations thrived in areas such as British Columbia and the Yukon. The revenue of the hospitality sector was around USD 7.08 billion, which proved to be robust in terms of domestic and international demand. For the future, up to 2025, Canada's tourism sector is expected to see further growth with the focus on sustainability, cultural diversity, and customized travel experiences to entice an international audience.
In addition, the hotel sector of Canada experienced a significant increase in its average daily rate (ADR) of USD 150.00, a record high, up 4.3% compared to the previous year. This was one of the contributing factors towards revenue per available room despite unchanged occupancy levels. The increased room rates were primarily stimulated by the robust demand from individual business travelers throughout the weekdays, while group bookings and weekend stays had slower recovery.
Canada's hospitality sector made huge strides toward sustainability, embracing green operations throughout multiple aspects. These involved embracing energy-efficient architecture, instituting waste reduction initiatives, and providing carbon-neutral accommodations. Properties such as Fogo Island Inn and Clayoquot Wilderness Lodge are setting the standard, embracing high-end encounters and conservation. The trend is also fostered by the growth of eco-tourism, as places like British Columbia's Great Bear Rainforest draw visitors who want immersive, nature-focused experiences. In the years ahead to 2025, the business is set to intensify its emphasis on sustainability through green innovations such as carbon-neutral holidays, eco-certifications like LEED, and the adoption of smart technology to save energy and water. These initiatives not only respond to increasing demand from environmentally responsible travelers but also establish Canada as a global leader in sustainable hospitality.
In conjunction with sustainability, technology innovation was a central tenet of operational and guest service strategy during 2024. Canadian hotels embraced a variety of technology resources quickly to simplify operations and enhance the guest experience. Mobile check-in and keyless room entry, which were once seen as luxury amenities, are now standard on a broad spectrum of properties, from affordable chains to upscale resorts. Cloud-based property management systems (PMS) made it easier to manage rooms more fully integrated and efficiently, including availability, rates, upkeep, and guest preferences.
Additionally, artificial intelligence started to have a revolutionary impact on personalization. Chatbots offered 24/7 multi-language support, algorithms powered by artificial intelligence suggested personalized experiences or services based on history, and dynamic pricing software maximized revenue according to current demand patterns. In-room amenities like smart thermostats, voice-activated light control, and internet-enabled television also increased the comfort and convenience of the stay.
Consumer Insights
Canadian tourists are more and more focusing on sustainability in their travel decisions. Virtuoso's 2024 Luxe Report reports that 54% of Canadian travel agents noticed clients taking climate change into consideration during trip planning. Incidentally, 86% of agents said clients are choosing off-peak travel seasons in order to take advantage of more favorable weather, and 74% are opting for travel destinations with more moderate climates. Furthermore, 32% of tourists are going out of their way to decrease their carbon footprint through environmentally friendly travel strategies.
Younger travelers are also more likely to spend on experiences over material possessions. According to the survey, 52% of Millennials and Gen Z expect to spend a greater percentage of their travel budget on exploration and adventure. Culinary travel is most popular among their activities, followed by outdoor and cultural activities, evincing a distinct penchant for active and experiential pursuits.
More than a third of Gen Z and Millennial business travelers intend to add personal recreational time to their work trips in 2024. Hilton has answered this trend with its Project H3 idea, providing apartment-like space perfect for long-term stays. These spaces allow for flexibility and convenience for visitors who blend work and play.
Sustainability is now a top priority among Millennial and Gen Z travelers, who are specifically selecting accommodations that resonate with their green values. In Canada alone, 40% of tourists are looking for hotels that adopt innovative sustainability measures, including energy-efficient facilities, waste reduction initiatives, and environmentally sourced materials. Also, 56% of Canadians opt for accommodations that feature greenery, such as rooftop gardens or interior plants, which indicates a strong appeal to biophilic design that introduces nature into the traveler's experience. These travel choices indicate that sustainability is no longer a specialized interest but a determining aspect of travel planning.
This pattern is also visible globally. Amongst younger travelers across the globe, there is an evident tendency to favor hospitality brands that reflect sincere environmental stewardship. The survey indicated that 62% of global travelers aged below 40 would be more inclined to stay at a property if it has actively taken measures to mitigate carbon footprints. In addition to this, 44% of travelers across the globe would pay extra for ecologically friendly accommodations, demonstrating an increased willingness to pay for responsible tourism. Consequently, hotels and travel services that adopt green initiatives like providing refillable toiletries, making sustainable materials part of their offerings, or sourcing local produce are more likely to appeal to and retain this green-conscious audience.
Report Coverage & Deliverables
- Competitive benchmarking
- Historical data & forecasts
- Company revenue shares
- Regional opportunities
- Latest trends & dynamics
Price Range Insights
The midscale segment had the highest revenue proportion of approximately 49.43% during 2024. Such hotels usually balance affordability with comfort by providing basic amenities including complimentary Wi-Fi, breakfast facilities, and ease of access close to transport hubs or tourist spots. Domestic travel picked up again, while international travel slowly gained, and most travelers used value and reliability as priorities, which midscale hotels are renowned for. In addition, the growth of branded midscale chains in urban and suburban regions further aided their increasing market share, making them command almost half of the market share.
Luxury and upper-upscale hotels in Canada are projected to develop at a CAGR of 10% between 2025 and 2030 due to growing disposable incomes, higher international travel, and an enhancing popularity for high-end travel experiences. With tourists looking for more bespoke and unique services, luxury hotels are adding premium amenities, wellness programs, and experiential stays to their offerings. Business travel and leisure travel are also becoming one, which is prompting more travelers to choose stays that balance comfort with elegance. Furthermore, growth in this segment is anticipated to be driven by the rollout of luxury hotel brands into key Canadian markets and the rebound in worldwide travel following the pandemic.
Ownership Model Insights
Independent hotels had the highest revenue market share of approximately 63.76% in 2024. In contrast with chain-affiliated hotels, independent hotels tend to capture the personality and the culture of the place they are located in, thus drawing tourists looking for distinctive and original experiences. Most of these hotels are located in busy tourist hotspots, boutique locations, or rural areas where brand-name hotels have less presence. Moreover, the emergence of electronic booking sites and Internet presence has enabled independent hotels to compete by using positive customer feedback and personalized hospitality to hold a leading market share.
The market for chained hotels is expected to increase at a 9.2% CAGR during 2025-2030. Underlying the robust growth forecast are a number of structural and demand-side changes that are supporting the role of branded chains in the domestic hospitality market. Chained hotels are being considered increasingly as reliable choices, especially during the post-pandemic period when health, safety, and standardization are becoming key decision drivers among travelers. Their capacity for uniform service delivery, supported by long-standing brand standards and global operational standards, serves them well in the perceptions of both local and international visitors.
Further, top hotel brands are strategically growing their presence in secondary and tertiary urban centers beyond central metropolitan cities in Canada. This geographical diversification is being prompted by increasing demand from local travelers, infrastructure growth, and the increasing popularity of regional business and recreation destinations. Chained hotels are responding to this trend by venturing into asset-light arrangements like franchising and management contracts, which provide opportunities for quick scale-up with minimum capital exposure. This also facilitates greater visibility of the brand and greater market penetration nationwide.
Booking Mode Insights
The OTAs and online travel agencies booked a share of 57.01% in 2024. OTAs provide an intermediary platform where users can easily compare prices, view reviews, and book hotels immediately, providing the most convenient option in the increasingly digital world of travel. Their high marketing penetration, mobile accessibility, and incorporation of additional travel services such as flights and car hires have further established them as a favorite. Also, most hotels, particularly independents, cooperate with OTAs to enhance visibility and reservations, thereby entrenching the market-dominant position of these platforms.
The marketplace bookings are forecasted to register a growth CAGR of 9.3% from 2025 to 2030. Marketplace booking provides a one-stop platform where users can compare prices, read reviews, and instantaneously book accommodations, which makes it a first choice in a digitally rapidly advancing travel ecosystem. Their robust marketing penetration, mobile optimised interfaces, and connectivity to other travel offerings such as flights and car rentals have also increased their popularity. Furthermore, most hotels, particularly independents, align with OTAs to enhance visibility and bookings, further solidifying the market dominance of these sites.
Key Canada Hotels Company Insights
Key players operating in the Canada hotels market are undertaking various initiatives to strengthen their presence and increase the reach of their products and services. Strategies such as expansion activities and partnerships are key in propelling the market growth.
Key Canada Hotels Companies
- Marriott International, Inc.
- Accor S.A.
- InterContinental Hotels Group PLC
- Coast Hotels Limited.
- Atlific Hotels.
- Silver Hotel Group
- Four Seasons Hotels Limited
- Hyatt Corporation
- Wyndham Hotel Management, Inc.
- Hilton
Recent Developments
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In March 2025, Hyatt Hotels Corporation welcomed its Destination by Hyatt brand to Canada with the opening of Hotel X Toronto, the brand's first in Canada. Located on the shores of Lake Ontario, the 404-room hotel features a variety of high-end amenities, including a year-round heated rooftop pool, Canada's first Guerlain Spa, a 90,000-square-foot athletic club, a carefully curated art gallery, a 250-seat cinema, and several dining options. This growth is a manifestation of Hyatt's plan to increase its footprint in the Canadian market by providing customers with distinctive and upscale experiences.
In March 2024, Marriott International pushed the growth in Canada with a strong pipeline comprising 90 new hotels, complementing its current 274 properties throughout the country. This growth is part of a larger aim to address rising travel demand, specifically in the lifestyle, midscale, and extended-stay segments. The group recently opened the Moxy brand in Canada with recent openings in Halifax and Banff, and it continues to expand further into markets such as Montreal, Vancouver, and Ottawa. Marriott is also launching its City Express brand in Canada, which appeals to travelers who are looking for economical yet quality accommodations. This is another demonstration of Marriott's continued push to differentiate its offerings and deepen its presence in gateway Canadian markets.
Canada Hotels Market Report Scope
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Report Attribute |
Details |
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Market size value in 2025 |
USD 45.67 billion |
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Revenue forecast in 2030 |
USD 68.56 billion |
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Growth rate |
CAGR of 8.5% from 2025 to 2030 |
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Actuals |
2018 - 2024 |
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Forecast period |
2025 - 2030 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
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Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
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Segments covered |
Price range, ownership model, booking mode |
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Country scope |
Canada |
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Key companies profiled |
Marriott International, Inc.; Accor S.A.; InterContinental Hotels Group PLC; Coast Hotels Limited.; Atlific Hotels.; Silver Hotel Group; Four Seasons Hotels Limited; Hyatt Corporation; Wyndham Hotel Management, Inc.; Hilton |
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Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
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Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
Canada Hotels Market Report Segmentation
This report forecasts revenue growth at the country level and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, MIR has segmented the Canada hotels market report on the basis of price range, ownership model, and booking mode
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Price Range Outlook (Revenue, USD Billion, 2018 - 2030)
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Economy
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Midscale
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Luxury and Upscale
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Ownership Model Outlook (Revenue, USD Billion, 2018 - 2030)
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Independent Hotels
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Chain Hotels
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Booking Mode Outlook (Revenue, USD Billion, 2018 - 2030)
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Direct Booking
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Online Travel Agents and Agencies (OTAs)
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Marketplace Booking
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