Vancouver Witnesses The Best Hotel Record In History As Room Rates Rapidly Increase

This may not come as a surprise for those of you who are aware of the ridiculous home prices in Toronto. However, the country’s most expensive place for housing is currently the most expensive place to stay, especially for those who enjoy luxurious hotels. The hotel rates are now the highest ever recorded compared to other high-end cities in North America.

This year is shaping up be the best year in history for Vancouver’s hotel industry.

Carrie Russell, a managing director of hotel consulting firm HVS Canada said “The numbers have just been exceptional,” and further pointing out that supply just can’t keep up with demand for hotel rooms this year.

A major factor that immensely contributed to the uprising of hotel markets across the country is the rising greenback and falling loonie. According to Colliers International Hotels, the country recorded 18 million overnight visitors in 2015 alone, which was a 7.5% increase compared to the previous year.

“We have grown more than we did during the Olympics. It was only a month. But this has been happening for two years,” Carrie says.

According to a survey conducted by RevPAR (revenue per available room per night), a key measure for hotel success, it was indicated that the country reached $155 in downtown Vancouver in 2015 and is estimated to increase to $178 next year.

Steve Giblin, the chief executive of Vancouver-based SilverBirch Hotels & Resorts which has 25 different hotels in countries across the globe, said: “There are a lot of things driving the market and number one is it’s a great destination.”

“No offence to other cities in Canada, but people want to come here,” Giblin added

Lyle Hall, managing director of Toronto-based HLT Advisory Inc., reported that last year was, without a doubt, the best year on record for conventional business in Vancouver. However, the tourism sector and leisure vacations are the main driving force.

“When you think about it there are less than half the hotels in downtown Vancouver than there are in Toronto,” Hall says . “You’ve got only two hotels (with more than) seven hundred rooms. Nobody has to fill a tanker (like some of the large Toronto hotels). So the ability of the hotel managers to grow a spine and kept their revenue management in check is easier when you only have to fill 500 rooms instead of 1,200.” he added.

Philipp Posch, general manager of the Trump building said “There is just great demand, lots of corporate interest, lots of social business. This is a very small city that hasn’t had a luxury hotel open up in the last six years.”

He went on and said, “We are the shiny new nickel on the street.”

“You want the market, to be tight but not too tight. Some incumbents might want limitations on supply,” McRae says, area vice-president of lodging development for Marriott International Inc. and a person whose business is mostly operating in the city. “But if you are unable to accommodate demand in the city it becomes a problem because what are you missing out on? We have seen some supply on hotel side and we need it because we are turning away traffic at peak times.”

“We need to keep those customers very engaged in the city. We don’t have those people who come good weather or bad weather or good experience or bad experience,” McRae added.