SW Ontario Hospitality Market Report

Supply conditions shaping regional performance. Roughly 170 hotel rooms are under construction in Southwestern Ontario, representing 0.8 per cent of existing inventory. At the same time, more than 570 rooms opened last year alone and more than 1,000 during the past three years. That 5 per cent inventory increase well outpaced the national rate of 0.7 per cent over the same period. While tourism demand and recent population growth support additional development, these supply-side dynamics have been a major factor in pushing occupancy down over the past three years.