Canada's New-Hotel Construction Dips 6.7% Year-Over-Year in December

Canada's New-Hotel Construction Dips 6.7% Year-Over-Year in December

Vacation News » Vacation & Leisure Real Estate Edition | By Michael Gerrity | January 14, 2011 8:00 AM ET

According to the December 2010 STR/McGraw Hill Construction Dodge Pipeline Report released this week, the Canadian hotel development pipeline comprises 206 projects totaling 21,828 rooms. This represents a 6.7-percent decrease in the number of rooms in the pipeline compared to December 2009.

"Canada's under-construction pipeline activity has slowed from an expected growth rate of 1.6 percent last year to 1.5 percent," said Lana Yoshii, VP of content management at STR. "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 percent (1,839 rooms) from projects under construction."

Among the Chain Scale segments, three segments reported increases in rooms in the total active pipeline: the Midscale with Food and Beverage segment (+43.9 percent with 2,401 rooms); the Unaffiliated segment (+7.5 percent with 9,346 rooms); and the Economy segment (+2.8 percent with 777 rooms). The Upper Upscale segment was the only segment to report no rooms in the total active pipeline for December.

Canadian pipeline by Chain Scale segment (number of rooms & percent change December 2010 vs. December 2009)

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