Tourism and Hospitality

Hotels & Motels: The Heart of Canadian Tourism and Hospitality

From the Rockies to the old-world charm of Québec City, Canadian accommodations welcome business travelers, vacationing families, and an increasing number of “workcationers” who combine remote work with exploration.

After the unprecedented shock of the pandemic, the sector rebounded thanks to the resumption of travel, the rise of international events, and provincial measures restricting competition from short-term rentals.

The growth of digital tools—contactless check-in kiosks, mobile keys, delivery robots—helps offset labor shortages while enhancing the customer experience.

Large chains benefit from marketing power and economies of scale, but travelers also favor independent boutique hotels that offer an authentic local experience.

By 2030, demand is expected to remain strong, driven by a surge in international visitors, robust domestic leisure travel, and the normalization of business trips.

Key Figures for the Canadian Hotel Sector (2025)

These indicators summarize the financial strength and expansion rate of commercial accommodations in Canada.

Annual Revenue (2025)

$33.4B

Total sales generated by over 6,600 hotels and motels, across all market segments.

Profit Margin

18,5 %

Share of revenue converted into net profit, boosted by rising rates and service automation.

CAGR 2020‑2025

15,1 %

Spectacular average annual growth, reflecting post-COVID catch-up and strong household appetite for travel.

Structural Trends and Five-Year Outlook

Canadian hotels are expected to continue their technological transformation to address the decline in access to foreign labor and meet the expectations of clients demanding speed and personalization.
The installation of EV charging stations, combined with the anticipated drop in fuel prices, will revive road tourism and increase motel occupancy.

At the same time, new hotel construction in Vancouver and Toronto aims to accommodate the influx of visitors expected for the 2026 World Cup, although British Columbia’s additional 2.5% lodging tax will temporarily weigh on margins.

Thanks to the resurgence of business travel linked to the return to offices and more targeted marketing aimed at high-spending international customers, the sector expects moderate but sustained growth of 1.6% per year between 2025 and 2030, supporting employment and investment nationwide.

These indicators summarize the financial strength and expansion rate of commercial accommodations in Canada.

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