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As we gear up for the summer season of 2026, Canada’s hotel market is set to exhibit remarkable resilience despite the backdrop of global economic uncertainty and fluctuating political landscapes. Insights from Nicole Nguyen, Senior Vice President at CBRE Hotels, reveal three pivotal trends that are likely to shape the industry landscape this year: a surge in demand from the FIFA World Cup, the ongoing recovery of both domestic and international tourism, and a notable increase in hotel supply exceeding 1.5%. These factors, coupled with Canada’s esteemed reputation for safety and stability, create an optimistic outlook for travelers and hoteliers alike.
The post-pandemic wave of travel has cultivated a vibrant sense of enthusiasm among Canadians and international travelers, leading to growth in hotel occupancy throughout 2025 — a trend that shows promise of carrying into the summer of 2026. This renewed confidence to travel for both business and leisure purposes is projected to bolster hotel performance in key cities across the nation.
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The upcoming 2026 FIFA World Cup is poised to substantially drive hotel demand in hotspots such as Toronto and Vancouver, attracting global visitors and enhancing their spending power. As Nguyen notes, events of this magnitude often catalyze long-term tourism growth, with many first-time guests returning to explore further afield following their attendance at such landmark occasions.
Toronto has experienced similar trends in the past. For instance, during Taylor Swift’s 2024 Eras Tour, the city enjoyed an increase in hotel occupancy to 80.7% for six consecutive nights, significantly up from a normal occupancy rate of 70%. Furthermore, the Toronto Blue Jays’ postseason accomplishments resulted in a substantial 15% increase in hotel demand, contributing over 11,000 additional overnight stays.
Despite some recent cancellations by FIFA for reservations in Toronto and Vancouver, hotel demand is currently running 28% higher than last year, showcasing unrelenting interest from both domestic and international tourists. This surge is anticipated to extend benefits to surrounding areas as first-time visitors are likely to expand their trips beyond the chosen host cities.
Canada’s tourism sector remains robust, buoyed by a vital strength in domestic travel, which accounts for approximately 70-75% of all travel activities. Nguyen emphasizes that Canada’s esteemed global image as a safe and friendly destination enhances its appeal, particularly amidst prevailing geopolitical uncertainties.
In 2025, the country welcomed a 7.5% increase in international arrivals, totaling 6.8 million visitors, while domestic travel also posted a respectable growth of 4.2%. Conversely, outbound travel from Canada to the United States saw a decline of 4.8%. With office activities on the rise, these trends are anticipated to contribute significantly to business and conference travel in 2026, further elevating hotel occupancy and revenue performance.
The findings of an SAP Concur Global Business Travel Survey suggest a growth in corporate travel budgets this year, as employees are increasingly inclined to invest in superior travel experiences. This merging of leisure and business demand is expected to solidify the overall profitability of the hospitality sector throughout the summer months.
After witnessing modest growth rates of less than 1% annually over the past six years, Canada’s hotel supply is projected to surpass 1.5% in 2026, marking one of the most significant expansions the industry has seen in years. According to Nguyen, the historically low levels of hotel supply have consistently contributed to record-high occupancy rates, keeping the sector vibrant and competitive.
Several noteworthy projects are on the horizon for 2026. Choice Hotels International is set to enhance its upscale Ascend Collection with the introduction of six new properties in Quebec, while Marriott’s Le Meridien Pinnacle Hotel will make its debut in the renowned SkyTower in downtown Toronto, the tallest building in Canada. Such developments illustrate an overarching trend of increased investments in hotel infrastructure, aiming to accommodate the burgeoning demand from both domestic and international travelers.
With an uptick in hotel demand and a thoughtfully managed supply growth, both the Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) are projected to remain robust in 2026, reinforcing the profitability of Canadian hotels. This promising outlook presents unique opportunities for operators to capitalize on leisure and business travel alike. Nguyen asserts that steady occupancy rates combined with scalable revenue growth signify a substantial triumph for the industry, particularly when contextualized against global challenges and escalating operational costs.
According to CBRE’s analysis, Canada’s hotel sector demonstrates remarkable resilience, with major cities gearing up to leverage global events, strong domestic tourism, and steady international arrival rates. Continued infrastructure investment in accommodation and services is expected to further bolster the sector’s performance throughout the summer and beyond.
Entering the summer of 2026, Canada’s hotels are equipped with strong fundamentals, underpinned by the arrival of FIFA World Cup tourism, a solid domestic travel framework, and a record new supply of accommodations. The convergence of high occupancy rates, rising ADR and RevPAR, coupled with a sustained influx of leisure and business travelers, underscores the market’s resilience. With continued investment and ongoing global events steering visitor traffic, the Canadian hotel industry appears optimally positioned for profitable growth, reaffirming its status as a stable and appealing destination for adventure seekers and business travelers alike.
Source: The post Canadian Hospitality Industry Demonstrates Resilience Amid Global Economic Uncertainty: What You Need To Know first appeared on www.travelandtourworld.com.
