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

Canada Hotels Market Growth & Trends

The Canada hotels market size is anticipated to reach USD 68.56 billion by 2030, registering a CAGR of 8.5% from 2025 to 2030, according to a new report by Grand View Research, Inc. As international borders have reopened and traveler confidence has returned, Canada is once again emerging as a prime destination for both leisure and business tourism. This renewed interest in travel is not only a reflection of pent-up demand but also a testament to Canada’s strategic efforts in promoting tourism, enhancing hospitality infrastructure, and positioning itself as a safe and diverse destination for all types of travelers. Major urban centers such as Toronto, Vancouver, and Montreal are leading the charge. Still, the momentum is also evident in smaller towns and resort regions, where occupancy rates are climbing steadily throughout the year.

Tourists from the U.S., Europe, and Asia are returning in greater numbers, drawn by Canada's natural beauty, cultural attractions, and welcoming environment. In particular, the favorable exchange rate has made Canada a cost-effective option for international visitors. At the same time, strategic marketing campaigns by provincial and national tourism boards have highlighted lesser-known destinations and unique experiences. Simultaneously, domestic travel within Canada has remained strong. Many Canadians continue to explore local destinations as an alternative to international travel, contributing to a healthy baseline of occupancy that is bolstered further by seasonal travel peaks such as summer vacations, ski trips, and national holidays.

The business travel segment has also regained momentum, contributing to hotel demand across urban centers. With the resumption of in-person meetings, conferences, trade shows, and corporate events, there has been a notable uptick in bookings for business-oriented hotels and conference venues. This trend is supported by Canada’s stable economy, growing technology and finance sectors, and a reputation for hosting world-class events. Hotels that cater to corporate travelers are enhancing their offerings with upgraded business facilities, digital connectivity, and flexible check-in/check-out options, ensuring they meet the evolving needs of professionals on the move.

Further fueling the demand is the evolution of guest expectations and the industry's ability to adapt. Hotels across Canada are investing in technology, sustainability, and personalization to create more seamless and memorable experiences. Contactless check-in, mobile concierge services, eco-friendly operations, and curated local experiences are now commonplace, especially in newly built or recently renovated properties.

Canada Hotels Market Report Highlights

• Based on price range, the midscale segment accounted for a significant share, due to its ability to offer enhanced amenities like on-site dining and fitness centers at affordable prices, appealing to both cost-conscious and experience-seeking travelers. Additionally, investors favored midscale properties for their resilience and profitability amid rising operational costs and economic uncertainties.
• Based on the ownership model, independent hotels held a substantial share, driven by travelers' increasing preference for unique, personalized, and locally immersive experiences. This trend was further supported by the growth of boutique and eco-friendly accommodation, which resonated with guests seeking authenticity and sustainability in their stays.
• Based on booking mode, the marketplace booking is expected to grow significantly over the coming years, driven by the increasing adoption of online travel agencies and third-party booking platforms. This growth is fueled by travelers' preference for convenient, flexible, and personalized booking experiences, as well as the proliferation of mobile applications and digital tools enhancing user engagement.

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