Report Urges Swift Action to Capitalize on Favorable Conditions for Hotel Development in Vancouver

• Destination Vancouver and the BC Hotel Association have released a report outlining strategies for meeting the city’s need for 10,000 hotel rooms by 2050.
• The report highlights five hotel development scenarios tailored to Vancouver’s market needs, and predicts significant economic impacts if the proposed strategies are implemented.

According to a new report by Destination Vancouver and the BC Hotel Association, the increasing demand for hotel rooms in Vancouver could be met by 2050. The report, “Hotel Community Impact Assessment,” presents a strategy for creating 10,000 new hotel rooms, which would stimulate job growth, invigorate local communities, and potentially unlock billions in economic activity.

The report suggests that the current state of the real estate market—characterized by a decrease in demand for office and strata developments—presents an opportune moment for hotel development. Royce Chwin, President and CEO of Destination Vancouver, emphasizes the importance of viewing hotel development as a tool for city-building and urges swift action to take advantage of the current market conditions.

A Destination Vancouver 2023 study informed the report’s recommendations, warning of significant economic losses due to a lack of hotel supply. In response, Destination Vancouver and the BC Hotel Association established the Vancouver Hotel Development Task Force, a team of industry and city representatives tasked with identifying strategies to facilitate new hotel development.

According to the report, constructing 10,000 new hotel rooms could result in 5,450 direct local hospitality jobs, up to 8,000 indirect jobs in retail, events, and services, and substantial annual municipal and provincial tax revenue.

The report also outlined key strategies to overcome development barriers, such as deferring development charges, pre-zoning for hotel use in transit-oriented areas, and building strategic partnerships to reduce risk and boost demand.

The report is expected to be relevant beyond Vancouver, potentially providing a blueprint for other municipalities experiencing a shortage of hotel accommodations. As the recommendations are considered and potentially implemented, the future of Vancouver’s hotel and travel industry will be closely watched.

Report: Hotel Community Impact Assessment.