Canada -  Vancouver Downtown

VANCOUVER DOWNTOWN has been the locus of robust economic activity in recent years. The city is home to 800 global mining and mineral firms. The information and communication technology sector is also a major economic driver; this sector is most actively acquiring new space in Downtown Vancouver. The office-market vacancy rate is at its lowest level since 2009. According to the Conference Board of Canada, Vancouver’s GDP is set to grow 2.9% in 2018 following on three years of 4.0% average annual growth. This impressive economic growth can be attributed to the booming housing market. Housing transactions slowed down in 2017, but prices are still on the rise, making Vancouver one of the most unaffordable housing markets in the world.

The same situation is evident in the Vancouver Downtown lodging market, where the value per room is projected to grow by approximately 20% for the fourth consecutive year in 2018. The same rate of growth is projected for 2019, followed by more modest increases in 2020 and 2021 that nevertheless remain in the double digits. In 2018, the value per room is expected to reach $412,853, making Vancouver Downtown the most expensive market among the 19 being ranked. By 2021, the per-room value is projected to reach $641,638. The Vancouver Downtown market is projected to see slightly stronger value growth than the Toronto Downtown market, retaining its top position in the rankings.

The Vancouver Downtown lodging market has maintained a fairly stable supply base in recent years. In 2017 and 2018, three new hotels opened, bringing 685 new rooms to the market; however, the closure of the Empire Landmark and the Coast Plaza together removed 557 rooms from the market, offsetting the increase from the new hotels.

Minimal demand growth is projected for Vancouver Downtown because the market is running at capacity. Nevertheless, events are taking place that will drive additional demand growth, such as the Globe Conference and the 2018 Canadian Figure Skating Championships. The Vancouver Convention Centre is expected to have a record-breaking year in 2018 with 33 citywide events, five more than in 2017. In 2019, the World Rugby Seven Series will take place in Vancouver, and the passenger count for Alaska cruise ships disembarking from Vancouver is expected to reach one million. The Vancouver Downtown market is so saturated that hoteliers can easily increase prices without negatively affecting occupancy. Since 2017, the market-wide ADR has increased at an average annual compounded rate of 6.0% at the same time that occupancy levels have steadily increased.

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 $116.77
2007 $124.05
2008 $124.33
2009 $105.45
2010 $125.63
2011 $119.30
2012 $117.19
2013 $119.70
2014 $129.54
2015 $154.18
2016 $171.84
2017 $184.03
2018 (f) $205.30
2019 (f) $219.79
2020 (f) $233.08
2021 (f) $240.79

For more information, please contact:

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