Market Report
Montreal Hospitality Market Report
2026 Investment Forecast
Supply Surge Tempers Growth Prospects,
Yet Fundamentals Remain Sound
Rapid development gives way to a phase of normalization. Following several years of outsized growth, Montréal’s hotel market is poised for a measured pullback in 2026. The moderation reflects the metro’s rapid inventory expansion — total supply has risen roughly 4.0 per cent over the past few years — creating near-term occupancy pressure as recently opened hotels compete for market share. Meanwhile, demand growth is broadly slowing, as softer cross-border travel and lingering trade-related economic uncertainty limit near-term upside. Even so, Montréal’s hotel fundamentals are still sound. The metro continues to attract a strong mix of convention and business travel, supported by its diversified economy and the proposed expansion of the Palais des congrès convention centre. On the leisure side, visitation will continue to be underpinned by the city’s rich history, culinary excellence and vibrant nightlife, along with marquee events such as Osheaga, the Formula 1 Grand Prix and the International Jazz Festival. As future supply stabilizes due to cost pressures and demand growth resumes, the market is well positioned for recovery beyond 2026, supported by its broad visitor base and long-term tourism appeal.
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