Metro Vancouver Hotel & Short Term Rental Market Discussion

[whatnext]

Originally Posted by seamusmcduff

This is a ridiculous item to have in your platform. No one would be risking investment in hotel construction if there wasn't at the very least a perceived need for them. The price of hotels here seems to heavily suggest that they are needed.

I wouldn't go quite that far. Didn't they perceive a huge need for rooms for FIFA and look what happened - initial numbers reported as 20% below normal and rates about the same as normal. And don't we have thousands of unsold condos from those shrewd business people who risked investing in building those due to perceived demand?

Originally Posted by seamusmcduff

What's the downside anyways if they end up overbuilding, lower hotel prices? Oh the horror. They can give all the reasons they want, but this just makes it clear the existing hotel owners are in their pocket

Lower room rates could make those projects not viable.

[RedArbutus]

Do we actually know that rates were "same as normal" during the 20% reduction compared to expected uptake during the WC? I thought they were supposed to be at a premium, and hotel operators were still waiting to anticipated influx weeks before the start of the WC in spite of the rate increase.

[jollyburger]

Originally Posted by RedArbutus

Do we actually know that rates were "same as normal" during the 20% reduction compared to expected uptake during the WC? I thought they were supposed to be at a premium, and hotel operators were still waiting to anticipated influx weeks before the start of the WC in spite of the rate increase.

I mean unless you expect the tourist market to book plane tickets/hotel rooms last minute the early spike in hotel room rates/cancellation of conventions probably had something to do with it.

I mean so what we're going to ban any development when there's a chance the investor might lose money?

[RedArbutus]

Were you responding to whatnext?

[jollyburger]

Originally Posted by RedArbutus

Were you responding to whatnext?

Yes for the second part.

[whatnext]

Originally Posted by jollyburger

I mean unless you expect the tourist market to book plane tickets/hotel rooms last minute the early spike in hotel room rates/cancellation of conventions probably had something to do with it.

I mean so what we're going to ban any development when there's a chance the investor might lose money?

I didn't say ban them.

I meant seamus' faith that developers wouldn't rush in if they might lose money was misplaced.

[chowhou]

Originally Posted by whatnext

And don't we have thousands of unsold condos from those shrewd business people who risked investing in building those due to perceived demand?

Why are you acting like this is a bad thing all of a sudden? You're just being a contrarian for the sake of it as always.

[whatnext]

Originally Posted by chowhou

Why are you acting like this is a bad thing all of a sudden? You're just being a contrarian for the sake of it as always.

Developers taking a haircut is a good thing, all part of the market correction.

My point was don't assume that the laws of capitalism prohibit developers of hotels or condos from rushing in only to lose their shirts.

[chowhou]

Originally Posted by whatnext

Developers taking a haircut is a good thing, all part of the market correction.

My point was don't assume that the laws of capitalism prohibit developers of hotels or condos from rushing in only to lose their shirts.

So what if they do? Let them.

[Feathered Friend]

Originally Posted by Changing City

They're seeking judicial review of the additional rezoning bonus that new City policy allows for commercial space in hotel rezonings.

That's only one of the actions they've filed since May, which include

To overturn the approval of the floating hotel at the Vancouver Convention Centre (1055-1085 Canada Place) - 250 rooms
https://www.uniteherelocal40.org/2026/05...ng-approval-of-vancouver-floating-hotel/

To overturn the approval of 888-896 Cambie - 246 hotel rooms, & 165 rental homes, as well as the aforementioned decision that would add hotel rooms as a permitted use in the new C-2A Zones
https://www.uniteherelocal40.org/2026/06...ic-hearings-on-major-rezoning-decisions/

A second action related to the above
https://www.uniteherelocal40.org/2026/07...qual-language-access-at-public-hearings/

Finally, a fourth petition that would overturn the density bonus for new hotel developments downtown.
https://www.uniteherelocal40.org/2026/07...r-vancouver-hotel-development-incentive/

Originally Posted by Changing City

No doubt their concern is about new hotels not having a union agreement

This may speak to their concerns, as the shortage of hotel rooms in New York City has led to record high prices, and the resulting wage increases.

New York City Hotel Workers Win Historic New Contract
June 2, 2026

New York City hotel workers have announced a groundbreaking eight-year industry wide agreement that will provide years of financial security and stability for 27,000 of the city’s hotel workers. The agreement provides for guaranteed wage increases (the largest ever in the history of the Hotel and Gaming Trades Council), free family health benefits, pension contributions, and strong protections on the job. By the end of the agreement in July 2031, room attendants and other non-tipped workers will be earning over $100,000.
https://unitehere.org/new-york-city-hotel-workers-win-historic-new-contract/

https://unitehere.org/new-york-city-hotel-workers-win-historic-new-contract/

[chowhou]

Originally Posted by chowhou

Oh, but don't you see that if room rates go down that means the union will have a lower ceiling for their bargaining demands?

How could I ever have known. Typical rent seeking behaviour. Why increase value in society when you can instead lobby for regulations that funnel more of what exists to yourself?

[jollyburger]

They should just go open their own hotel and guilt trip hotel guests into cleaning their room

[WarrenC12]

Overheard some Americans talk about coming into town for a few days prior to a cruise. They had originally booked an AirBNB because hotel prices were through the roof. Then after FIFA gave back all those rooms prices dropped like a rock and they switched to a hotel. I didn't hear any specific prices though.

[RedArbutus]

Very relevant: this morning there's a Globe & Mail piece on putting together the hard data on economic benefits by sector to Vancouver and Toronto. From the article:

Meanwhile, data from the U.S.-based commercial real estate data and analytics firm CoStar show that while hotels in both cities saw lower occupancy during World Cup match days compared with last year, they still posted revenue gains because guests paid sharply higher rates.

On Toronto’s first match day, June 12, the revenue generated per available room climbed 36 per cent compared with last year, despite occupancy falling 8 per cent. On Vancouver’s first match day, June 13, revenue per available room rose 31 per cent despite occupancy falling 15 per cent, according to the CoStar data.

The gains were driven by steep price increases; average daily rates were up 48 per cent in Toronto and 53 per cent in Vancouver on those days, the CoStar data show. Subsequent match days saw smaller gains.

The Greater Toronto Hotel Association said hotel occupancy for the week ending June 20 was at 72 per cent – down from 88 per cent in the same week last year. The BC Hotel Association, meanwhile, doesn’t yet have complete booking data but said in May that occupancy rates for June were on pace to be down 15 per cent in downtown Vancouver and down 9 per cent across the city and Lower Mainland.

Source: https://www.theglobeandmail.com/canada/article-canadas-world-cup-games-are-over-whats-left-behind/

[whatnext]

Originally Posted by WarrenC12

Overheard some Americans talk about coming into town for a few days prior to a cruise. They had originally booked an AirBNB because hotel prices were through the roof. Then after FIFA gave back all those rooms prices dropped like a rock and they switched to a hotel. I didn't hear any specific prices though.

Yes, that's kind of what I heard as well. A lot of cruise passengers who might normally have booked a couple Vancouver nights pre and post cruise also elected to just fly in-fly out also.

[jollyburger]

I wonder how AirBnB did over the same period.

[kikin]

people generally use airbnb because hotel prices are too high, if we had enough hotel rooms available there would be much less incentive for airbnb

I expect that if we open enough hotel rooms it might take a year or two for tourism to catch on to the idea that Vancouver is not a super expensive destination and we might see lots of people coming here for a couple nights for a concert or coming here instead of overseas, etc.

[MIPS]

Originally Posted by kikin

people generally use airbnb because hotel prices are too high, if we had enough hotel rooms available there would be much less incentive for airbnb

It's too lucrative a loophole to dodge the vacant home tax by balancing your properties as dedicated Airbnb suites. Generates revenue and if the city nabs you in a sweep you just pay the operator's fee and keep going.
I recall Vancouver tried pushing back on Airbnb years ago and they lashed back with the lawyers.

Also Airbnb sucks. I get the idea of short-term renting an extra room in your house to someone for a night or two but the last two times I used it I had more the feeling it was just people operating as a fleet of totally-not-a-hotel locations around the city with a list of rules you had to follow or get stupid fees on the bill.

[WarrenC12]

Originally Posted by MIPS

It's too lucrative a loophole to dodge the vacant home tax by balancing your properties as dedicated Airbnb suites. Generates revenue and if the city nabs you in a sweep you just pay the operator's fee and keep going.
I recall Vancouver tried pushing back on Airbnb years ago and they lashed back with the lawyers.

I'm not sure what you're talking about. AirBNB is fully illegal in Vancouver and most of BC if it's not your principal residence. They don't enforce these laws very well but they exist.

Originally Posted by MIPS

Also Airbnb sucks. I get the idea of short-term renting an extra room in your house to someone for a night or two but the last two times I used it I had more the feeling it was just people operating as a fleet of totally-not-a-hotel locations around the city with a list of rules you had to follow or get stupid fees on the bill.

Yes the experience has gone downhill significantly since the early days.

[Changing City]

While most of the attention was on the 920 rooms in the Bay Parkade hotel tower proposed by Holborn, Vancouver City Council also just approved 1,019 rooms in five other hotel projects. There wo't be any more public hearings until there's a new Council towards the end of the year.

I think there are currently eight projects under construction with (coincidentally) 1,019 rooms in the city, (although it's possible one or two more that are approved have actually started construction).

There are 22 more projects that Council have approved as rezonings, or the City has approved a DP, with 5,045 rooms, that have yet to start construction. (There's one they refused with 292 rooms).

There are nine more projects that have been submitted with 1,753 rooms.