Canada Hotels Market (2025 - 2030) Size, Share & Trends Analysis Report By Price Range (Economy, Midscale), By Ownership Model (Independent Hotels, Chain Hotels), By Booking Mode, And Segment Forecasts

Canada Hotels Market Size & Trends

The Canada hotels market size was estimated at USD 42.34 billion in 2024 and is expected to grow at a CAGR of 8.5% from 2025 to 2030.  The Canadian hotel market is a dynamic and evolving sector shaped by macroeconomic conditions, tourism trends, and shifting traveler expectations. 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 experienced a robust resurgence in international tourism, welcoming over 25 million visitors, a significant rebound nearing pre-pandemic levels. This revival was propelled by the country's reputation as a safe, eco-conscious destination, offering diverse experiences from luxury urban stays to immersive nature adventures. Major cities like Toronto, Vancouver, and Calgary saw heightened hotel occupancy, bolstered by events and leisure travel. At the same time, boutique and eco-friendly accommodations flourished in regions like British Columbia and the Yukon. The hospitality sector's revenue reached approximately USD 7.08 billion, reflecting strong domestic and international demand. Looking ahead to 2025, Canada's tourism industry is poised for continued growth, emphasizing sustainability, cultural richness, and personalized travel experiences to attract a global audience.

Furthermore, Canada’s hotel industry saw a notable rise in its average daily rate (ADR), reaching a record high of USD 150.00, up 4.3% from the previous year. This increase played a key role in boosting revenue per available room, despite occupancy levels remaining stable. The higher room rates were largely driven by strong demand from individual business travelers during weekdays, while group bookings and weekend stays showed slower recovery.

Canada's hotel industry significantly advanced its commitment to sustainability, integrating eco-friendly practices across various operations. This included adopting energy-efficient designs, implementing waste reduction programs, and offering carbon-neutral stays. Establishments like Fogo Island Inn and Clayoquot Wilderness Lodge are leading by example, combining high-end experiences with environmental stewardship. The trend is further supported by the rise of eco-tourism, with destinations such as British Columbia’s Great Bear Rainforest attracting travelers seeking immersive, nature-based experiences. Looking ahead to 2025, the industry is poised to deepen its commitment to sustainability through green innovations like carbon-neutral stays, eco-certifications such as LEED, and the integration of smart technologies for energy and water conservation. These efforts not only cater to the growing demand from eco-conscious travelers but also position Canada as a leader in sustainable hospitality.

Parallel to sustainability, digital innovation became a core pillar of operational and guest service strategy in 2024. Canadian hotels rapidly adopted a range of technology tools to streamline operations and improve the guest journey. Mobile check-in and keyless room entry, once considered premium features, have become standard offerings across a wide range of properties, from budget chains to luxury resorts. Cloud-based property management systems (PMS) enabled more integrated and efficient control over room availability, pricing, maintenance, and guest preferences.

Moreover, artificial intelligence began playing a transformative role in personalization. Chatbots provided 24/7 assistance in multiple languages, AI-driven algorithms recommended tailored experiences or services based on past behavior, and dynamic pricing tools optimized revenue based on real-time demand trends. In-room technologies such as smart thermostats, voice-controlled lighting, and streaming-enabled televisions also enhanced the convenience and comfort of the stay.

Consumer Insights

Canadian travelers are increasingly prioritizing sustainability in their travel choices. According to Virtuoso's 2024 Luxe Report, 54% of Canadian travel advisors observed that their clients are considering climate change when planning trips. Notably, 86% of advisors reported clients opting for off-peak travel times to benefit from milder weather, while 74% are choosing destinations with less extreme climates. Additionally, 32% of travelers are actively seeking to reduce their carbon footprint through sustainable travel practices.

Younger travelers are also more inclined to spend their money on experiences rather than things. The survey shows that 52% of Millennials and Gen Z are planning to dedicate a larger portion of their travel budget to exploration and adventure. Culinary tourism ranks highest among their interests, followed by outdoor and cultural experiences, showing a clear preference for engaging and memorable activities.

Over a third of Gen Z and Millennial business travelers plan to extend their work trips in 2024 to include personal leisure time. Hilton has responded to this trend with its Project H3 concept, offering apartment-style accommodations designed for extended stays. These accommodations enable comfort and flexibility for travelers who mix work and pleasure.

Sustainability has become a core priority for Millennial and Gen Z travelers, who are actively choosing accommodations that align with their environmental values. In Canada alone, 40% of travelers seek hotels that implement innovative sustainability practices, such as energy-efficient infrastructure, waste reduction programs, and environmentally friendly sourcing. Additionally, 56% of Canadians prefer accommodations that incorporate greenery, like rooftop gardens or plant-filled interiors, showing a strong interest in biophilic design that brings nature into the guest experience. These preferences signal that sustainability is no longer a niche concern but a decisive factor in travel planning.

This shift is also evident on a global scale. Among younger travelers worldwide, there's a clear inclination to support hospitality brands that demonstrate genuine environmental responsibility. The survey revealed that 62% of travelers under the age of 40 are more likely to stay at a property if it actively works to reduce its carbon footprint. Furthermore, 44% of global travelers would be willing to pay more for eco-conscious accommodations, highlighting a growing willingness to invest in responsible tourism. As a result, hotels and travel providers that embrace green initiatives such as offering refillable toiletries, using sustainable materials, or sourcing local food are better positioned to attract and retain this environmentally aware audience.

Price Range Insights

The midscale segment accounted for the largest revenue share of about 49.43% in 2024. These hotels often strike a balance between affordability and comfort, offering essential amenities such as free Wi-Fi, breakfast options, and convenient locations near transportation hubs or tourist attractions. As domestic travel rebounded and international tourism gradually increased, many travelers prioritized value and consistency, which midscale hotels are known for. Additionally, the expansion of branded midscale chains across urban and suburban areas contributed to their growing market presence, helping them dominate nearly half of the market share.

The demand for luxury and upscale hotels in Canada is expected to grow at a CAGR of 10% from 2025 to 2030, driven by rising disposable incomes, increasing international tourism, and a growing preference for high-end travel experiences. As travelers seek more personalized and exclusive services, luxury hotels are enhancing their offerings with premium amenities, wellness programs, and immersive experiences. Business and leisure travel are also converging, encouraging more guests to opt for accommodations that combine comfort with sophistication. Additionally, the expansion of luxury hotel brands into popular Canadian destinations and the recovery of global travel post-pandemic are set to fuel sustained growth in this segment.

Ownership Model Insights

Independent hotels accounted for the largest revenue share of about 63.76% in 2024. Unlike chain-affiliated properties, independent hotels often reflect the character and culture of their locations, making them appealing to travelers seeking unique and authentic experiences. Many of these establishments are situated in popular tourist areas, boutique settings, or rural regions where brand-name hotels have limited reach. Additionally, with the rise of digital booking platforms and online visibility, independent hotels have been able to effectively compete by leveraging strong customer reviews and tailored hospitality, helping them maintain a dominant share of the market.

The demand for chained hotels is anticipated to grow at a CAGR of 9.2% from 2025 to 2030. This strong growth projection is underpinned by several structural and demand-side shifts that are reinforcing the position of branded hotel chains within the national hospitality landscape. Chained hotels are increasingly viewed as trustworthy options, particularly in the post-pandemic era, where health, safety, and standardization have become critical determinants of traveler choice. Their ability to deliver uniform service experiences, backed by established brand protocols and global operating standards, positions them favorably in the eyes of both domestic and international guests.

Additionally, leading hotel chains are strategically expanding their footprint beyond major metropolitan hubs into secondary and tertiary cities across Canada. This geographic diversification is being driven by rising demand from domestic travelers, infrastructure development, and the growing appeal of regional business and leisure destinations. Chained hotels are capitalizing on this opportunity by entering into asset-light models such as franchising and management contracts, allowing for rapid scale-up with minimized capital exposure. This approach also enables enhanced brand visibility and deeper market penetration across the country.

Booking Mode Insights

The bookings through online travel agents and agencies (OTAs) accounted for a share of 57.01% in 2024. OTAs offer a centralized platform where users can compare prices, read reviews, and book accommodations instantly, making them a preferred choice in an increasingly digital travel landscape. Their strong marketing reach, mobile-friendly interfaces, and integration with other travel services like flights and car rentals have further boosted their popularity. Additionally, many hotels, especially independents, partner with OTAs to increase visibility and bookings, reinforcing the dominant role of these platforms in the market.

The bookings through marketplaces are expected to grow at a CAGR of 9.3% from 2025 to 2030. Marketplace booking offers a centralized platform where users can compare prices, read reviews, and book accommodations instantly, making it a preferred choice in an increasingly digital travel landscape. Their strong marketing reach, mobile-friendly interfaces, and integration with other travel services like flights and car rentals have further boosted their popularity. Additionally, many hotels, especially independents, partner with OTAs to increase visibility and bookings, reinforcing the dominant role of these platforms in the market.

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.

Recent Developments

• In March 2025, Hyatt Hotels Corporation introduced its Destination by Hyatt brand to Canada with the launch of Hotel X Toronto, marking the brand's debut in the country. Situated on the shores of Lake Ontario, the 404-room hotel offers a range of upscale amenities, including a year-round heated rooftop pool, Canada's first Guerlain Spa, a 90,000-square-foot athletic club, a curated art gallery, a 250-seat cinema, and multiple dining venues. This expansion reflects Hyatt's strategy to enhance its presence in the Canadian market by offering unique and luxurious experiences to travelers.

• In March 2024, Marriott International accelerated its growth in Canada with a robust pipeline that includes 90 new hotels, adding to its existing 274 properties across the country. This expansion is part of a broader strategy to meet increasing travel demand, particularly in the lifestyle, midscale, and extended-stay categories. The company recently launched the Moxy brand in Canada with new openings in Halifax and Banff, and it plans to expand further into cities like Montreal, Vancouver, and Ottawa. Marriott is also introducing its City Express brand to the Canadian market, targeting travelers seeking affordable yet quality accommodations. This move highlights Marriott’s ongoing efforts to diversify its offerings and strengthen its footprint in key Canadian destinations.

Canada Hotels Market Report Scope

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, Grand View Research has segmented the Canada hotels market report on the basis of price range, ownership model, and booking mode:

• Price Range Outlook (Revenue, USD Billion, 2018 - 2030)

  • Economy

  • Midscale

  • Luxury and Upscale

• Ownership Model Outlook (Revenue, USD Billion, 2018 - 2030)

  • Independent Hotels

  • Chain Hotels

• Booking Mode Outlook (Revenue, USD Billion, 2018 - 2030)

  • Direct Booking

  • Online Travel Agents and Agencies (OTAs)

  • Marketplace Booking