Canada -  Vancouver Downtown

In 2015, the Vancouver Downtown hotel market realized impressive RevPAR growth, putting together strong increases in both demand and rate alongside the closure of some competitive supply. The year-end performance of this market was in line with our expectations; the per-room value increased 20.7% to $230,223 in 2015. This per-room value was the highest in the country that year.

RBC forecasts a 3.0% increase in GDP for British Columbia in 2016. This is the highest rate of growth of any province in Canada, which reflects the strong economic development that is taking place 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 increases in demand and ADR in 2016 and through the next several years. For 2016, the RevPAR is projected to increase 13.2% to a record-breaking high of $175.59. A slight drop in occupancy is nonetheless projected for 2017 and 2018 because of the new room supply that is poised to enter the market with the 147-room Trump Tower condo-hotel, which is set to open at the end of 2016, the 188-room Autograph Collection-The Douglas and the 350-room JW Marriott Vancouver, which are expected to open in 2017.

In 2016, the per-room value for the Vancouver Downtown market is projected to increase 25.3% to $288,471. The per-room value is then projected to increase more moderately through 2019. The Vancouver Downtown market is projected to retain the highest per-room value of all the major markets in the country in 2019 by a considerable margin.

Change In Value For Market: ($CAD)

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 ($CAD)

Vancouver Downtown RevPAR ($CAD)

Year RevPAR
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 $175.59
2017 (f) $189.26
2018 (f) $196.36
2019 (f) $210.30

For more information, please contact:

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