The Canadian Hotel Landscape at the End of Q1 2023
As March 2023 draws to a close, the Canadian hotel industry is entering a new phase of post-pandemic recovery. Performance indicators have been steadily improving, development pipelines are rebuilding, and brands are sharpening their focus on purpose-built concepts that meet evolving guest expectations. Against this backdrop, the groundbreaking of the first avid hotel in Canada marks a strategic milestone for both the brand and the broader hospitality sector.
Select-service and midscale properties are gaining renewed attention from investors, driven by resilient demand from value-conscious leisure travellers, essential workers, and domestic business travel. At the same time, mixed-use projects are becoming more prominent, blending hotels with residential, retail, and flexible workspace to diversify income streams and activate neighbourhoods year-round.
Introducing the First avid Hotel in Canada
The avid brand, part of the IHG Hotels & Resorts portfolio, was created to offer a straightforward, high-quality stay focused on the essentials: reliable cleanliness, comfortable sleep, and a frictionless guest journey. The launch of the first avid hotel in Canada represents the brand’s expansion into a market that values consistency, strong loyalty programs, and dependable value.
Breaking ground on this inaugural Canadian property signals confidence in both the country’s midscale segment and its long-term travel fundamentals. With domestic tourism stabilizing and cross-border travel improving, the timing positions the new avid hotel to capture a broad mix of leisure and corporate demand as markets normalize.
Why the avid Brand Fits the Canadian Market
Canada’s hotel supply is dominated by well-known select-service and limited-service brands, but there is room for new flags that can deliver a modern, efficiency-driven guest experience. avid hotels are designed around four core promises that align well with Canadian traveller expectations:
- Consistent quality: Rooms are engineered with sound-reducing features, high-quality mattresses, and black-out shades to prioritize restful sleep.
- Focused design: Public spaces are streamlined, practical, and geared to short stays and quick transitions, supporting guests who are on the move.
- Smart technology: Mobile-driven check-in, digital access to information, and intuitive room controls support a low-friction stay.
- Everyday value: The brand targets travellers who want reliability and cleanliness over extraneous amenities, without sacrificing design or comfort.
For owners and developers, the brand’s efficient footprint and standardized design help manage construction costs and reduce time to market, both crucial in an environment of elevated materials pricing and supply chain complexity.
Mixed-Use Development: A Growing Component of the IHG Pipeline
The first avid hotel in Canada is being introduced at a time when mixed-use projects are taking on a larger role in the IHG development pipeline. Developers are increasingly integrating hotels into larger ecosystems that may include residential units, office components, retail, entertainment, and even medical or educational facilities.
This approach offers several advantages:
- Diversified revenue: Multiple asset classes within one project can help offset fluctuations in hotel demand.
- Built-in demand generators: On-site offices, retail, and amenities contribute to steady guest traffic.
- Enhanced placemaking: Mixed-use developments create destinations rather than standalone properties, helping hotels become part of the broader community fabric.
For brands like IHG, the growth of mixed-use projects supports a flexible deployment strategy: upscale, lifestyle, extended stay, and midscale offerings can be layered into the same development, capturing different demand segments and length-of-stay patterns.
Regional Momentum: New Holiday Inn Express in Brandon, Manitoba
The groundbreaking of Canada’s first avid hotel is part of a wider wave of select-service growth, evident in markets such as Brandon, Manitoba, where a new Holiday Inn Express is adding contemporary room supply to a regional hub. Smaller and secondary markets have shown notable resilience, supported by essential services, resource-based industries, and regional travel.
In communities like Brandon, fresh branded inventory can catalyze additional investment, support local events and sports tourism, and give corporate travellers more consistent accommodation choices. The synergy between brands like Holiday Inn Express and avid strengthens IHG’s overall presence, allowing the company to capture a spectrum of price points and guest needs across Canada’s diverse markets.
Operational Themes Shaping Openings and Renovations
New builds and renovations underway in early 2023, including the extensive work at Atlantica Halifax, reflect a clear industrywide shift: cosmetic updates are no longer enough. Owners are committing to deeper transformations that address how guests travel, work, and relax today.
Across openings, sales, and renovations, several themes stand out:
- Experience-led public spaces: Lobbies and lounges are becoming multi-use zones, enabling co-working, informal meetings, and social gatherings.
- Digital-first guest journeys: From mobile keys to online check-in, contact-light service remains a priority, improving both guest control and operational efficiency.
- Wellness and rest: Soundproofing, light control, air quality, and thoughtful bedding are viewed as core brand promises rather than premium add-ons.
- Sustainability: Energy-efficient systems, smart thermostats, and waste-reduction measures are being embedded into project design rather than treated as afterthoughts.
These same principles underpin the avid brand, giving the first Canadian property an advantage as it opens into a market where guests expect both value and thoughtful design.
Investor and Developer Appeal in a Shifting Market
For developers evaluating new projects at the end of Q1 2023, the first avid hotel in Canada illustrates how carefully targeted select-service brands can align with current market realities. Rising operational costs and evolving labour dynamics are pushing many owners toward leaner service models that can still deliver a solid guest experience.
avid’s standardized prototype is designed to streamline development, reduce complexity, and keep construction timelines predictable. When paired with a strong global reservation system and loyalty base, this creates a compelling value proposition for owners who want both efficiency and brand-driven demand.
Furthermore, where local planning and zoning allow, avid hotels can be integrated into mixed-use developments or positioned alongside complementary commercial uses, such as quick-service restaurants, medical offices, or logistics hubs, to enhance site performance.
Guest Expectations in 2023: Essentials, Done Exceptionally Well
Guest behaviour in early 2023 reflects a blend of pent-up travel demand and cautious spending. Many travellers are looking for hotels that deliver the fundamentals flawlessly rather than overwhelming them with underused amenities. This is where avid’s brand promise resonates.
Key expectations include:
- Reliability: Dependable cleanliness standards and consistent room layouts across properties.
- Comfortable sleep: High-quality beds, linens, and well-designed rooms that prioritize rest.
- Efficiency: Quick check-in, intuitive wayfinding, and simple food-and-beverage options.
- Connectivity: Strong, secure Wi-Fi and functional work areas, even in compact spaces.
The first avid hotel in Canada is being designed with these expectations as non-negotiable requirements, positioning it well to welcome both domestic and international guests seeking a reliable midscale stay.
Strategic Timing: Opening into Recovery
Breaking ground in late March 2023 allows the property to time its opening with a more mature phase of the recovery cycle. Construction can move forward amid improving travel patterns, while developers can fine-tune design features based on lessons learned over the last several years.
By the time doors open, the hotel will be able to leverage:
- Strengthening corporate travel: As in-person meetings and events return, select-service properties are expected to capture cost-conscious business bookings.
- Solid domestic leisure demand: Road trips, regional getaways, and visits to friends and relatives continue to support occupancy in many Canadian markets.
- Growing loyalty program engagement: Frequent travellers are increasingly concentrating stays within a few preferred brands and ecosystems.
Looking Ahead: What the First avid Hotel Means for Canada
The arrival of avid in Canada is more than the launch of a new brand flag; it is a signal of where the country’s hotel market is headed. Expect to see:
- More targeted midscale development: Projects focused on efficient footprints, operational simplicity, and strong value propositions.
- Greater integration with mixed-use: Hotels designed as integral components of broader live-work-play environments.
- Deeper renovations: Existing properties undergoing substantial upgrades that impact layout, technology, and guest experience, rather than surface-level refreshes.
As brands expand and refine their Canadian presence, the lessons from this first avid project—around design, operations, and guest engagement—will likely influence a new wave of select-service and midscale openings across the country.