West Lethbridge has been waiting a long time for a hotel. It is finally coming and it is bringing a lot with it.
The Core Crossing development broke ground on May 29, 2026, at The Crossings in west Lethbridge. The ceremony marked the start of construction on a $300 million multi-phase project that will add more commercial, residential, and hospitality space to the west side than anything built there in a generation. Completion is expected by 2030.
Four separate developers are involved, each responsible for a different component of the 13-plus-acre project. Together they are transforming The Crossings from a neighbourhood shopping centre into something closer to a self-contained urban hub.
The hotel a first for West Lethbridge
The most significant addition is a 120-room full-service hotel being developed by TCI, the hospitality arm of the Tollestrup Group. It will be the first full-service hotel on the west side of Lethbridge a gap that has existed for as long as the community has been growing.
The hotel will include a full-service tower and an extended-stay component designed for long-term guests. That extended-stay element reflects the reality of Lethbridge's market: the city sees significant traffic from contractors, healthcare workers, and business travellers who need accommodation for weeks at a time, not just a single night.
Alongside the hotel, the Tollestrup Group is developing its fourth Wendy's restaurant in Lethbridge. Both projects are under the same development.
"This investment represents our commitment to growth, community, and quality," said Martie Murphy, CEO of Tollestrup Group. "We're excited to help shape the future of West Lethbridge."
The commercial expansion
Sherwood Developments Inc., working with Avison Young Lethbridge and Silver Ridge Construction, is leading the commercial component. The 11-acre project will deliver more than 100,000 square feet of mixed-use development across mid-box units, commercial retail units, and drive-thru pads.
Phase 1 of The Crossings is already an established regional shopping centre anchored by No Frills, Rexall, McDonald's, Tim Hortons, Boston Pizza, Original Joe's, Servus Credit Union, and several other tenants. Phase 2 commercial tenants are expected to take possession of units this fall.
The west side of Lethbridge is the commercial gap this expansion is designed to fill. More than 43 percent of Lethbridge's population of approximately 111,400 lives on the west side. West Lethbridge also has the highest percentage of households earning over $82,000 annually in the city. The demand for services on that side of town has been outrunning supply for years.
450 homes and a seniors facility
Cedar Ridge Homes is contributing the residential component more than 450 units across apartments, condos, and townhouses on 13 acres in a multi-phase development. Phase one delivers over 100 residential units with completion expected in 2027.
"The Crossings is the new heartbeat of West Lethbridge," said Lonny Hoy, CEO of the Cedar Ridge Group. "We're excited to build a cutting-edge residential development unlike anything Lethbridge has seen previously."
Rounding out the project, the Green Acres Foundation is developing a new senior apartment community on 2.11 acres within The Crossings. Currently in the design and funding phase, the facility will offer affordable, independent living options for seniors close to the commercial amenities the broader development is bringing.
Why this matters for west Lethbridge
The west side of Lethbridge has grown significantly over the past 20 years. Entire new neighbourhoods have been built. Schools, a library branch, and the Cor Van Raay YMCA have all arrived. But the commercial and hospitality infrastructure has lagged behind the residential growth.
The result is that west Lethbridge residents routinely cross the bridge to the east or north sides of the city for services that should exist closer to home. A hotel on the west side means visitors staying near University of Lethbridge, Lethbridge College, or the hospital do not have to drive across the city. A 100,000-square-foot commercial expansion means retail and services that west side residents currently bypass their own community for.
The city's own comprehensive plan for The Crossings has described the vision since 2014: a pedestrian-oriented mixed-use centre where residents can live, work, shop, play, and learn. A $300 million investment starting in 2026 is the closest the west side has come to realizing that vision.
What is already at The Crossings and what comes next door
Phase 1 of The Crossings is already one of the busiest retail nodes in west Lethbridge. No Frills, Rexall, McDonald's, Tim Hortons, Boston Pizza, Original Joe's, Servus Credit Union, Coulee Veterinary, and Crossings Dental all operate there now. The site sits within minutes of two high schools with a combined 1,700-plus students, the Crossings Branch Public Library, Cavendish Recreation Centre, and the Cor Van Raay YMCA.
Phase 2 builds directly on that existing foot traffic. Retailers and service businesses considering the new commercial space are not starting from scratch they are locating beside an already-busy centre with an established customer base. That is a meaningfully different risk profile than opening in a greenfield location, and it is part of why Phase 2 commercial tenants are expected to take possession as early as this fall, before the hotel and residential phases are anywhere near complete.
What the timeline looks like
Groundbreaking: May 29, 2026. Phase 2 commercial tenants: fall 2026. Phase 1 residential 100-plus units: 2027. Full project completion: 2030.
For leasing information on Phase 2 commercial units contact Avison Young Lethbridge. For more about the development visit crossingslethbridge.ca.
Sources:
Green Acres Foundation, Major Multi-Use Development Coming to the Crossings, West Lethbridge, November 2025 (greenacres.ab.ca)
Alberta Major Projects Registry, The Core Crossing West Lethbridge (majorprojects.alberta.ca)
Bridge City News, $300 million West Lethbridge Multi-use Development Begins Construction, May 29, 2026 (bridgecitynews.ca)
Avison Young Lethbridge, Crossings Phase 2 pre-leasing page (avisonyoung.ca)
City of Lethbridge, The Crossings Comprehensive Plan (lethbridge.ca)
