For a comprehensive review of the Canada market, click below:
HVS In-Depth Canada Hotel Valuation Index:
2025
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2024
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2019
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2018
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2017
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2016
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2015
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2014
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2013
VICTORIA, the capital of British Columbia, is located on the southern tip of Vancouver Island and had a population of 447,000 in 2024. With its mild climate, abundant parkland, and Victorian architecture, Victoria is known for outdoor activities and sightseeing.
The major industries in the city are education, marine industries, construction, healthcare, retail, agriculture, tourism, and public services, including provincial public administration and the Department of National Defence. Victoria is heavily dependent on the government-funded public service sector. In 2024, this sector represented one-quarter of the total economic activity in Victoria. As a result, the city's GDP is often positively correlated with government spending.
The tourism sector is a key driver of activity in Victoria, which had 2.4 million visitors in 2024. Victoria also welcomed 316 cruise ships with nearly one million passengers that year. BC Ferries transported almost 9 million passengers and 3.2 million vehicles across 25 different coastal routes during the summer of 2024, reflecting Victoria’s popularity as a leisure destination. The Victoria hotel market has benefitted from the new restrictions on short-term rentals that were implemented across the province in May 2024; several units have been removed from the market, resulting in compression for the hotel sector.
Between 2025 and 2028, 384 hotel rooms are expected to enter the Victoria market. Between 2019 and 2024, Victoria experienced the highest growth in per-room value of all the Canadian markets with an increase of 51.7%. From 2024 to 2025, the value per key is projected to increase by another 12.4%. The per-room value is projected to reach $432,900 in 2028, with an HVI value of 4.40.
Victoria is expected to finish in third place in 2028, rising from fourth position in 2025, surpassing the Vancouver Airport market.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
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