Authorities in Vancouver, Canada are setting out plans to encourage development of more hotels in the region, calculating the city will need 10,000 more rooms by 2050.
A previous study by Destination Vancouver, published in 2023, calculated a significant economic loss for the province, if the shortfall is not addressed. Now, partnering with the BC Hotel Association, it has set out a strategy to ensure new hotel capacity is delivered.
Hotels drive economic benefit
“Hotel development needs to be seen as a city-building tool, said Royce Chwin, paresident and CEO of Destination Vancouver. “We’re seeing unprecedented interest for investment in new hotel properties in Vancouver. There is an opening to take swift action, otherwise capital will move wherever conditions are more favourable.”
Currently, hotels in the city are close to capacity. Year round, they are averaging 80% occupancy, and up to 95% during peak periods. Without more rooms, those promoting the city for major conferences and events say that Vancouver venues will lose out as event organisers look elsewhere.
And during a 20 year period to 2022, closures and conversions meant the city actually lost hotel capacity. During the pandemic, hotels with around 550 rooms were repurposed to permanent accommodation in the city.
A task force has been looking at ways to oil the wheels, so that developments can make it from concept to reality. Ingrid Jarrett, who co-chairs the task force, declared: “This is about more than hotel rooms—it’s about building a vibrant, resilient city. Hotels are economic engines and social anchors.”
“There are 22 projects currently in the development pipeline, representing approximately 4,200 rooms, which is encouraging,” said Chwin. “We’re looking forward to the industry moving ahead with these new projects.”
Latest research suggests there are five key market segments that hotel developers should be looking to target. These are large, luxury hotels with event space; large full service upper mid-market properties; limited service, extended stay; economy hotels aimed at a younger demographic; and boutique urban resort properties.
To help encourage development, several recommendations have been made. These include deferring development charges, zoning space for hotel development around transit hubs, building partnerships to reduce risk, and pairing hotel projects with residential.
Among pipeline projects in the city are a development in Seymour Street, which will see a heritage building converted to 36 apartments and suites for Sonder. The Arts & Crafts Building is expected to open by mid 2026.
A modest branded pipeline
The big brands are also growing their presence. Marriott has signed to brand the new build AC by Marriott Vancouver West Broadway, a 12 storey block with 151 rooms that will complete in late 2026. And it has also agreed to brand the Yaletown Hotel under its Autograph Collection. A project that has yet to be timetabled, it will feature a 30 storey tower combining the hotel and floors of rental apartments above.
Hilton, too has projects in planning. Its 271 room Tapestry Collection by Hilton West Broadway is scheduled for completion in early 2028, in a project that will feature a co-located long stay hotel with 125 rooms under the group’s Homewood Suites brand.
