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Canadian Hotels Are Resilient In the Face of Uncertainty
May 26, 2026 4 Minute Read
Despite ongoing political and economic uncertainty, the Canadian hotels market is poised to perform well this summer.
“The ‘elbows up’ sentiment drove a lot of growth in 2025,” says CBRE Hotels Senior Vice President Nicole Nguyen. “We anticipate that sentiment, combined with global instability and rising costs, to carry over to this year, as well.”
Here are three trends that Nguyen says will shape the summer travel season in Canada.
World Cup Will Be a Game Changer
The 2026 FIFA World Cup should be a gamechanger for Canadian host cities Toronto and Vancouver, bringing a boost in tourism, spending and global attention.
“Events like the World Cup tend to spur growth,” says Nguyen. “Not only do they bring in international travellers for the event, but they can also encourage people to explore more of Canada the next time they visit.”
Taylor Swift’s 2024 Eras Tour had a significant impact on Toronto hotels, generating an estimated $282 million in total economic growth and lifting hotel occupancy in the city to 80.7 % during Swift’s six-night Toronto stand. Normal occupancy for that time of year hovers around 70%.
And the Toronto Blue Jays’ postseason run last fall led to a 15% average increase in hotel demand compared to the previous year, adding a total of more than 11,000 overnight stays.
While FIFA recently cancelled a slew of hotel room reservations in Toronto and Vancouver ahead of the World Cup, hotel demand is currently up 28% compared to last year and is helping to drive tourism in surrounding regions.
“People coming to Canada for the first time to see a World Cup game could get inspired to come back to see more of the country,” says Nguyen.
Domestic Travel Gets a Boost
As geopolitical tensions create unpredictability around the world, Canada is poised to capitalize on its core strength: a reputation for safety and stability.
“Canada is in a great position on the world stage from a tourism perspective,” says Nguyen. “About 70 to 75% of our travel is domestic, and we expect to see continued growth in international tourists visiting thanks to our reputation as a safe, friendly and welcoming country.”
Canada’s tourism industry saw a noticeable boost from international visitors last year, as overseas arrivals reached 6.8 million in 2025, up 7.5% from 2024. According to Nguyen, domestic visits also increased by 4.2% while trips by Canadians to the U.S. declined by 4.8%.
“And with increasing office activity across the country, business and conference-related travel might see a noticeable uptick in 2026,” she says.
A SAP Concur Global Business Travel Survey suggests that business travel budgets will be on the rise this year, with more employees travelling for business and open to spending on better travel experiences.
Record New Hotel Supply
Canada has seen a less than 1% increase in new hotel supply for six consecutive years. In 2026, however, supply is expected to cross the 1.5% mark. “It is trending upwards,” says Nguyen.
“We’ve seen very little supply for a long time mostly due to the pandemic, but 2026 will see an acceleration of new hotel development.”
Choice Hotels International has announced the expansion of its upscale Ascend Collection, with six new properties slated to open in Quebec this year.
Marriott’s Le Meridien Pinnacle Hotel is expected to open in late summer in downtown Toronto, located in SkyTower, Canada’s tallest building.
“We’ll be seeing some of the strongest hotel supply growth in years in 2026,” Nguyen says. “And since we haven’t been pumping a ton of new supply into the system, occupancy rates have stayed at record high levels.”
As a result, Average Daily Rate (ADR) growth is anticipated to remain strong in 2026, as is Revenue Per Available Room (RevPAR) growth, reinforcing profitability across the sector.
“That’s a big win for the Canadian hotels industry,” says Nguyen.
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