Vancouver is updating its hotel policy to address the city’s hotel room shortage and tourism economy.

In August 2024, Vancouver’s average daily hotel rate downtown hit $422, nearly double the Canadian average. Summer occupancy was over 90 per cent, highlighting the urgent need for more supply.

“Vancouver has consistently attracted interest from international hospitality brands and independent hoteliers, but we haven’t been able to fully capitalize on that potential,” said Royce Chwin, president  and CEO of Destination Vancouver. “The result is that we’ve had a net loss of hotel rooms since 2002 and it’s increasingly difficult to meet demand. The market conditions are in place right now to address the gap, otherwise Metro Vancouver risks losing up to $30.6 billion in economic output by 2050. We’re fully in support of the City’s efforts to spur new hotel development and look forward to our continued collaboration.”

City Staff worked with industry, including Destination Vancouver and the BC Hotel Association, through the Vancouver Hotel Development Task Force to shape the proposed updates. The city is also pinpointing opportunities for pod hotels and micro-suites, student housing that can be used as hotel space during the summer months, and density considerations for back-of-house and event spaces.

“Tourism plays a huge role in Vancouver’s economy, and having enough hotel rooms is key to bringing in major events and welcoming visitors from around the world,” said Mayor Ken Sim. “With thousands of hotel rooms already in the pipeline, we’re nearly halfway to meeting our goal of 10,000 new rooms. The updates Council passed today will help speed things up by making it easier to build more accommodations in Vancouver’s key commercial areas.”