Colliers Hotels Releases Q1 2026 INNvestment Canada Report

Why It Matters

The shift toward Western Canada signals a geographic rebalancing of capital, while Ontario’s scarcity could tighten valuations and spur competition for limited assets. Strong RevPAR growth confirms that hotel operators are capitalizing on post‑pandemic demand, making the sector attractive for investors seeking stable returns.

Key Takeaways

• Western Canada contributed 73% of Q1 hotel investment volume
• National hotel investment rose 3% YoY despite strong Q1 2025 baseline
• Ontario's share fell to 15% due to limited asset availability
• RevPAR showed notable YoY growth across Canada in Q1 2026

Pulse Analysis

The latest Colliers Hotels report highlights a pronounced pivot in Canadian hospitality investment toward the West. British Columbia’s bustling airport submarket and Victoria’s waterfront properties attracted multiple high‑value transactions, reflecting investors’ confidence in the region’s tourism pipeline and infrastructure upgrades. This concentration of capital not only boosts local employment but also raises the bar for service standards, prompting operators to innovate in guest experience and sustainability to stay competitive.

Ontario, traditionally the nation’s hotel investment engine, now faces a supply crunch that limited its market share to just 15% of national activity. The scarcity of sale‑ready assets has intensified bidding wars for premium locations, driving up price per key and compressing yields. Yet, ample liquidity in the broader capital markets and strong operational fundamentals keep demand robust, encouraging investors to explore alternative strategies such as joint ventures, ground‑up development, or repositioning existing properties to capture upside.

Across Canada, RevPAR’s year‑over‑year growth signals that demand recovery is translating into higher room rates and improved occupancy. This trend is bolstered by a resurgence in domestic travel, corporate events, and an expanding convention calendar. For stakeholders, the data suggests a favorable environment for both equity and debt financing, while also highlighting the importance of geographic diversification to mitigate regional risk. As the sector moves forward, monitoring asset pipelines and RevPAR trajectories will be critical for allocating capital efficiently and sustaining long‑term returns.