Vancouver Hospitality Market Report
Travel Demand Recovery in Full Swing;
Supply-Side Crunch Aids Property Performance Metrics
Prime location drives Canada’s strongest market. Vancouver’s natural beauty and its robust tourism infrastructure helped lift the average occupancy rate to 73 per cent in 2022. This initial rebound in occupancy was led by a swift comeback in transient leisure travelers, which helped drive key revenue metrics for many of the metro’s hoteliers. To further strengthen Vancouver’s tourism sector, the federal government has distributed $2.9 million through the Tourism Relief Fund for the metro’s 14 projects. This will likely result in a better visitor experience, attracting more leisure travelers to the metro. In recent months, weekday occupancy rose back to the pre-pandemic level, which suggests that a full recovery in corporate travel may be taking form. This momentum, coupled with continued strength in the leisure travel segment, is expected to increase the metro’s average occupancy above 80 per cent in 2023.