Vancouver is taking steps to address its hotel room shortage, proposing new policies to speed up construction and conversion projects. The proposed overhaul, set to go before city council next week, is part of the city’s push to keep up with rising tourism demand. Read More
Without a significant boost in hotel stock, tourism organizations, including Destination Vancouver, warn the city risks losing out on billions in economic activity.
Without a significant boost in hotel stock, tourism organizations, including Destination Vancouver, warn the city risks losing out on billions in economic activity.
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Vancouver is taking steps to address its hotel room shortage, proposing new policies to speed up construction and conversion projects. The proposed overhaul, set to go before city council next week, is part of the city’s push to keep up with rising tourism demand.
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A new city report underscores the urgency of the situation. It says Vancouver has about 13,000 hotel rooms across 78 hotels — a drop of about 550 rooms since 2020, mainly due to government-funded conversions of older hotels into supportive housing or for people experiencing homelessness.
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Meanwhile, demand is surging, with average downtown occupancy reaching 90 per cent in August 2024 and room rates soaring to $422 a night — far higher than in other major Canadian cities.
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It is estimated that Vancouver needs about 10,000 new hotel rooms by 2050 to meet growing tourism demand, the report states.
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“Vancouver faces a hotel accommodation shortage, leading to a loss of potential business across the city, especially during major events. Visitors are hesitant to come due to limited accommodation options, and many are choosing to stay outside the city for more affordable alternatives.”
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The hotel development policy replaces the interim framework introduced in 2018 to increase hotel supply through site-specific rezoning in areas like downtown, the Broadway corridor, and key commercial streets. Key updates include allowing mixed-use hotel-residential projects in the central business district, permitting hotels on narrower sites under the Broadway plan, streamlining office and strata hotel conversions, and promoting development near transit hubs.
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Without a significant boost in hotel stock, tourism organizations, including Destination Vancouver, warn the city risks losing out on billions in economic activity.
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This week, Destination Vancouver and the B.C. Hotel Association released a joint study that echoed the city’s concerns. The study estimated that failing to add hotel capacity could cost Vancouver an estimated $30.6 billion in economic output and more than 168,000 full-time jobs.
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“Hotel development needs to be seen as a city-building tool,” Royce Chwin, president and CEO of Destination Vancouver, said in a statement Wednesday. “We’re seeing unprecedented interest in new hotel investments in Vancouver. There is an opportunity to act quickly, otherwise, capital will move elsewhere where conditions are more favourable.”
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The assessment highlights the top two types of hotels Vancouver needs to meet its targets — the “big brand,” a three- or four-star, full-service hotel with 200 to 300 rooms downtown or near transit hubs, and “the familiar,” which caters to working professionals seeking affordable, longer-term stays with homey touches such as kitchenettes.