Need feedback from those who have traveled through Canada (specifically Ontario)

Hi everyone :)

I am looking to open a hostel in Canada as soon as I am done my travels. My initial thought was Niagara Falls as it gets a lot of tourism, but this may not necessarily be a city that lacks backpacker accommodations. I want to open it somewhere where there is currently a shortage of hostels (I would like to help travelers rather than have to worry about taking business away from the competition and vice versa).

The other two criteria would be:
- must be in Ontario (preferably within a 3-hour radius of Toronto; and
- should have something recurring each year (like a festival) that would also get somewhat of a repeat-client base

However, as long as it is in Ontario and in a place that would help backpackers, I am open to all suggestions. Where did you find it difficult to get decent accommodation when you traveled through Ontario?

Thanks in advance for your help,

Anna.