Progressive Conservative Leader John Tory not only lost in his run for premier of Ontario, but was defeated in his bid to win a Toronto-area seat in the legislature.

He took on a tough opponent in the Toronto riding of Don Valley West, but only secured 39.6 per cent of the vote.

Liberal Education Minister Kathleen Wynne emerged as the victor, garnering 50.2 per cent of the vote.

"He's a gracious, decent man, he's a terrific guy ... and I wish him all the best," Wynne told CTV News.

Tory endured a rough ride during a campaign clouded by his controversial stance to publicly fund faith-based schools.

He also chose to run in the Toronto riding despite having a safe seat in the rural riding of Dufferin-Peel-Wellington Grey.

Political analysts said Tory will now face heavy internal pressure to resign as leader.

But despite the double loss, he said he would like to stay on as party leader.

"This was my first campaign as party leader and I have learned from that experience," he told supporters Wednesday night. "Obviously I am ultimately accountable for the campaign and for the results and I accept that accountability as leaders must do.

"I (will) be consulting with our caucus and with our candidates and the party membership in the days ahead to get their advice on how we can proceed forward."

It's the first time in 17 years an Ontario party leader has lost a seat. In 1963, Liberal Leader John Wintermeyer lost his Waterloo North seat, and in 1948, Conservative Premier George Drew lost his High Park seat despite his party winning a majority.

Political analysts said Tory did a good job distancing himself from previous Conservative premiers Mike Harris and Ernie Eves. Early in the election campaign, opinion polls showed people believed he would make the best premier.

In his platform, Tory vowed to cancel the health premium, get tough on crime and put 100 per cent of provincial gas tax revenues towards roads and transit.

But the single plank of bringing religious schools under the public education umbrella -- at a cost of $400 million -- seemed to be the 53-year-old's downfall.

A week before the election, Tory gave into the political pressure, softening his stance by saying he would allow a free vote on the issue. But polls showed it did little to change the minds of voters.

Tory stood by his education proposal throughout, saying "was a matter of principal."

Pundits said the election was his to lose. Some, including those in his own party, said he threw it away.

Tory, who spent most of his life as a backroom political advisor, has made his fair of mistakes, most notably on former prime minister Kim Campbell's 1993 campaign. He approved a TV ad that mocked Jean Chretien's facial deformity.

Voters responded by reducing the Conservative government to just two seats, and the Liberals began a 12-year reign.

Tory then moved on to become president of Rogers Cable, and later commissioner of the Canadian Football League.

After being urged for years to throw his hat in the political ring, he did so to run for mayor of Toronto in the 2003 fall election. He finished a close second to David Miller.

Tory was elected leader of the Ontario Progressive Conservative party in 2004 after Eves resigned from the post. Tory was originally elected as an MPP in Dufferin-Peel-Wellington Grey in a byelection, but last year announced he would seek re-election in Don Valley West where he has lived most of his life.

Tory began creating a fresh face for the party and a new approach. While Mike Harris pressured unions, Tory has asked for their co-operation. Where Harris talked tough about welfare recipients and panhandlers, Tory talked sympathetically about the state of those who are less fortunate.

Analysts said Tory successfully rebuilt the strength of the party that dominated Ontario's political system from 1943 to 1985. After Eves' loss four years ago, some wondered how the Tories would recover.