Significant News for Hotel Investment in Canada

On September 15, the Prime Minister announced a new Productivity Mega Deduction, a major tax measure designed to encourage business investment by allowing immediate expensing for a broad range of capital assets on a permanent basis.

This announcement reflects recommendations Hotels Canada has consistently advanced over the past two budget cycles, specifically our call for enhanced Accelerated Capital Cost Allowance measures similar to U.S. bonus depreciation rules.

This is an important example of how Hotels Canada’s advocacy work benefits the entire hospitality ecosystem, creating conditions that support investment and business growth for both hotel operators and the companies that serve them.

A Positive Step Forward on Hotels Canada’s Tax Priorities

A policy change of this magnitude reflects the efforts of many stakeholders; however, it is worth noting Hotels Canada’s leadership on this issue. Expanding accelerated depreciation and investment incentives for hotels has been a core advocacy priority for the association.

Hotels Canada has led efforts within the tourism and hospitality sector to build support for investment-focused tax policy recommendations, helping align industry partners around a common agenda. We have also served as an advisor to the Canadian Chamber of Commerce’s tax competitiveness initiative, advocating for investment incentives that extend beyond traditional manufacturing industries and better recognize the needs of capital-intensive sectors such as tourism and hospitality. 

While this announcement represents meaningful progress, Hotels Canada will continue advocating for policies that support tourism investment and long-term sector growth. For Affiliate Members, stronger hotel investment conditions ultimately mean a stronger pipeline of projects, procurement opportunities, and business activity throughout the hospitality supply chain.

ANNOUNCEMENT