Canada -  Vancouver Downtown

For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:   2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013

VANCOUVER DOWNTOWN  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 city’s key industries include transportation and warehousing owing to the city being the western terminus of trans-continental railways and highways, as well as several major port facilities. The strength of this sector has given rise to a diverse manufacturing sector which utilizes the city’s transportation connections by rail, road, sea, and air.

The Vancouver Downtown lodging market has maintained a fairly stable supply base in recent years as any new hotel opening were countered with the closure of others for redevelopment.  The strength of the local economy has fuelled growth in the region’s real estate market for office and residential uses.  These competing land uses have beat out hotels and created significant barriers to new hotel supply being developed despite the operating metrics being very strong relative to other Canadian jurisdictions.

The Downtown Vancouver market has a base of demand from diverse sources comprised equally of the broad segments of leisure, business, and meeting and group.  The strong demand, which had seen the market run at capacity for extended periods each year, had enable the operators to sustain strong rate growth year over year.  The market now faces a markedly different outlook. While supply will remain constrained in the years ahead, demand has a wholly different outlook.  While the market is diverse, and perhaps less susceptible to a prolonged downturn, the meeting and group segment and largely discretionary nature of leisure travel will be subject to the economic impact of current events and the depth, and breadth of the resultant recession across North America and overseas feeder markets.

With supply stable and Vancouver an attractive metropolitan centre for business, and leisure along with world class meeting facilities, a nature setting along the ocean and at the foot of mountains, the city will remain highly desirable and demand will return.  As such, rate is likely to have the lasting impact in this market area. While demand will be relatively quick to recover given the degree to which it has exceeded capacity in recent years, it becomes a question of what room rates operators will attain, particularly in the near term as high rated overseas and cruise passenger segments, and lucrative base contracts with airlines, will be much less in demand.

The Downtown Vancouver market area will sustain its first decline in values since 2013, in 2020.  The decline is expected to be less acute than the national average as the city remains a highly desirable investment market, and to recover in the subsequent years.

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%

For more information, please contact:

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