Vancouver Hospitality Market Report

Hotel shortage impedes economic growth. Over the past decade, Vancouver has seen a net loss of roughly 800 hotel rooms. Many have been demolished or converted into residential, causing a 2.0 per cent drop in room inventory compared with 2014. While this bodes well for current owners – as limited supply-side pressures have helped underlying fundamentals – it has also weighed on Vancouver’s economic potential. The lack of supply has not only made it extremely expensive to travel to Vancouver, but it has also limited the amount of events the city can host. In turn, this has put a ceiling on economic growth potential. Looking ahead, Vancouver is a host city for the 2026 FIFA World Cup. To met the expected demand and capture all the economic benefits, more hotel supply is needed. This is one reason why the under-construction pipeline is at its highest on record. City officials and investors want to maximize the gains associated with the anticipated surge in domestic and international demand.