Canada -  Vancouver Airport

In 2016, the VANCOUVER AIRPORT lodging market realized a strong increase in demand at the same time that the room supply slightly decreased. Additionally, Vancouver International Airport served more than 22 million passengers in 2016, which represents growth of 9.7%, the highest increase of the past ten years. The strong increase in lodging demand, alongside growth of the ADR, resulted in a significant 13% increase in RevPAR over the previous year.

The Conference Board of Canada estimates that the economy of Metro Vancouver grew by 4.1% in 2016. More moderate but nonetheless healthy economic growth is projected for the region in the coming years. The real GDP is projected to grow at a more moderate pace of 3.2% in 2017 because the foreign buyers tax levied by the BC government is slowing down construction activity.

Given the stronger year-end performance, the per-room value for the Vancouver Airport lodging market increased by 20.6% in 2016 over the previous year and reached $169,530, which is higher than the projection that we made in the 2016 HVI report, where we forecasted a 19.4% increase. The per-room value of the Vancouver Airport market is by far the highest among the Canadian airport markets tracked in the HVI.

The outlook for the Vancouver Airport market is positive for 2017. Airport passenger traffic is on the rise. Year-to-date through July 2017, the airport served more than 13 million passengers, surpassing the previous year’s record by 8.2%. At the same time, no notable change in supply is expected, although a 100-room Super 8 closed earlier in 2017. The $1.8-billion expansion to Vancouver International Airport is expected to support market-wide demand growth over the next few years—a $213-million terminal expansion already opened in January 2015. The launch of new flight services also contributed to growth in passenger traffic

In this positive operating environment, the per-room value is projected to increase a robust 11.6% in 2018 to $222,453 and then at a more moderate pace through 2020. The Vancouver Airport market is positioned with the third-highest value among the 19 major markets in 2020, which is notable for an airport market given that urban markets typically have higher land costs and performance levels.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Vancouver Airport RevPAR Change

Vancouver Airport RevPAR

Year RevPAR
2005 68.21
2006 79.86
2007 88.56
2008 87.92
2009 75.49
2010 87.74
2011 75.23
2012 73.64
2013 79.78
2014 87.94
2015 100.07
2016 112.26
2017 127.85
2018 (f) 138.79
2019 (f) 142.50
2020 (f) 148.20

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
CRussell@hvs.com
  • +1 604 988-9743 (w)