Canada -  Vancouver Downtown

In 2016, the VANCOUVER DOWNTOWN hotel market realized impressive RevPAR growth, putting together strong increases in both demand and rate. Although the RevPAR growth for this market was slightly weaker than we expected in 2016 HVI report, the increase was nevertheless strong. The market finished the year with a RevPAR of $172, representing an increase of 11%.

According to RBC, the GDP growth in Bristish Columbia was 3.6% in 2016, which was the highest rate of growth of any province in Canada, reflecting the strong economic environment in the province. The low Canadian dollar is boosting the manufacturing and construction demand coming from the US, which is nurturing the economic growth taking place in BC.

The Vancouver Downtown market is projected to see a robust 8% increase in ADR in 2017 even though the supply is projected to increase by 1.1% with the opening of the 350-room JW Marriott, the 188-room The Douglas Autograph Collection, and the 147-room Trump International Hotel & Tower Vancouver. Given the closure of the 358-room Empire Landmark Hotel and the 199-room Coast Plaza, the market is expected to absorb the new supply with relative ease. In this environment, the RevPAR is projected to increase 7% to a record-breaking high of $185 in 2017. The occupancy is nevertheless projected to remain relatively stable in 2017 and 2018 because of the new room supply that is poised to enter the market.

In 2016, the per-room value for the Vancouver Downtown market increased by 25.4% to $288,664 which is in line with the projection we made in the last year’s HVI report. The per-room value is then projected to grow aggressively through 2020, reaching $448,721 in that year. The Vancouver Downtown market is projected to retain the highest per-room value of all the major markets in the country in 2020 by a considerable margin.

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 Downtown RevPAR Change

Vancouver Downtown RevPAR

Year RevPAR
2005 107.60
2006 116.75
2007 123.97
2008 124.41
2009 105.42
2010 125.63
2011 119.20
2012 117.19
2013 119.69
2014 131.64
2015 155.16
2016 171.97
2017 184.98
2018 (f) 196.10
2019 (f) 204.52
2020 (f) 212.18

For more information, please contact:

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