Hotels Canada Urges Tax Action to Attract Investment
A new policy report says federal tax changes are needed to keep hotel investment capital competitive with the United States.
Updated on Nov. 12, 2026 in Hotels
Hotels Canada released its policy report Competing for Capital: Why Canada Must Act Now to Secure Hotel Investment on November 12, 2026, from Ottawa. The report was developed after months of consultation with hotel owners, investors, lenders, advisors and industry experts across Canada.
Why it matters
The report finds that investors are more than twice as likely to pursue acquisitions and renovations than new hotel development in Canada. It argues that jurisdictions such as the U.S. offer stronger after-tax returns, which places Canada under growing pressure to compete for investment capital.
The report compares Canadian hotel investment with U.S. after-tax returns, citing investors' preference for acquisitions and renovations over new builds by more than two to one. It proposes four federal tax policy recommendations, including a 100 per cent first-year write-off for new hotel buildings, but does not state whether these measures have government support.
The players
Hotels Canada
Hotels Canada is a national industry association representing the Canadian hotel sector, which advocates on policy matters affecting hotel owners and operators.
The details
The report outlines four federal tax policy recommendations aimed at improving Canada's competitiveness for hotel investment. It was produced through consultation with hotel owners, investors, lenders, advisors and industry experts across the country.
Timeline
November 12, 2026: Hotels Canada releases the policy report from Ottawa.
Travel Outlook
The report frames Canada's hotel investment challenge against U.S. after-tax returns, which draw capital that Canadian hotels would otherwise attract. It calls for federal tax changes to narrow that gap as investors favour acquisitions and renovations over new construction.
Travellers may see hotel supply and pricing shaped by whether new federal tax measures are adopted, though the report does not set a timeline for change. Readers planning Canadian trips should expect no immediate change from this report alone.
The takeaway
Hotel investment decisions in Canada are influenced by after-tax returns relative to other countries, so tax policy directly shapes whether capital goes into new hotels or existing properties. Readers following the topic can watch for any federal response to the report's four recommendations.
Further reading
For more on the industry behind this push, see Hotels coverage across Canada.
Source note: This article includes information reported by Hotelier Magazine.
