Canada -  Vancouver Downtown

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2016 | 2015 | 2014 | 2013

VANCOUVER DOWNTOWN, which is known for its ethnically diverse population, has developed into Canada’s main business hub for trade with Asia and the Pacific Rim. The city is the industrial, commercial, and financial heart of British Columbia. The cultural diversity and the strong economy, coupled with the picturesque setting and mild climate, have also made the city a magnet for new immigrants.

The demand for Vancouver’s manufactured exports has risen in recent years, supported by the weak Canadian dollar. The manufacturing and construction sectors are projected to grow at a more moderate rate, and the city’s GDP is projected to increase by 2.8% in 2019 and 2.6% in 2020. Vancouver’s most important industry, the transportation and warehousing sector, is expected to grow over the next two years.

The Vancouver Downtown lodging market has maintained a fairly stable supply base in recent years. In 2017 and 2018, four new hotels opened, bringing 887 new rooms to the market; however, the closure of the Empire Landmark and the Coast Plaza together removed 557 rooms from the market in this period, offsetting the increase from the new hotels.

Minimal demand growth is projected for Vancouver Downtown because the market is running at capacity. The World Rugby Sevens Series will take place in Vancouver in late 2019 and early 2020, and the passenger count for Alaska cruise ships disembarking from Vancouver is expected to reach one million. The Vancouver Downtown market has significant unaccommodated demand that permits hoteliers to increase rates with little impact on occupancy.

The outlook for the Vancouver Downtown lodging market continues to be very positive. The value per room grew by double digits for the fourth consecutive year in 2018 – a 23.6% increase. The rate of growth that is projected for 2019 is slightly lower but nonetheless strong at 14.1%, and double-digit growth is projected for both 2020 and 2021. For 2022, more moderate growth of 8.9% is projected given the anticipated level of new supply. In 2019, the value per room is expected to reach $487,600, making Vancouver Downtown the most expensive market among the 18 being ranked. By 2022, the per-room value is projected to reach $670,500. The Vancouver Downtown market is projected to see slightly stronger value growth than the Toronto Downtown market, retaining its top position in the rankings.

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 $119.30
2012 $117.19
2013 $119.62
2014 $129.54
2015 $154.18
2016 $171.84
2017 $184.03
2018 $212.45
2019 $220.95
2020 (f) $232.86
2021 (f) $243.04
2022 (f) $244.94

For more information, please contact:

Carrie Russell, AACI, MAI, RIBC, ISHC
[email protected]
  • +1 604 988-9743 (w)