- What Vancouver’s hotel industry had the strongest performance in 2024
- Why The revenue per available room increased 6.6%
- What next The city is seeing a boom in hotel construction
Vancouver led the way in Canada’s hospitality market for 2024, Avison Young said in a report released this week.
The Pacific Coast city recorded a hotel occupancy rate of 78% throughout the year, with an average daily rate of $285 and revenue per available room of $223.
Despite the city’s strong showing, the occupancy rate still represented a small decrease from 2023 of 0.4%. At the same time, revenue per available room increased 6.6%
Vancouver also saw a boom in hotel construction throughout the last year as developers aimed to diversify their portfolios and respond to pent-up demand.
Industry response followed a March 2023 report from accounting firm MNP which said the city had a shortage of 20,000 hotel rooms that needed to be rectified by 2050 or risk the loss of billions in economic activity.
Though Vancouver had a healthy demand for hotel stays, the city only saw one major trade in the hotel sector with the sale of the Highline Metrotown by Thind Properties — an effort to relieve debt.
Avison Young said the broader Canadian hotel industry stabilized in 2024, returning to pre-pandemic levels with an occupancy rate of 65.7%.
Toronto was the second highest performing market with an occupancy rate of 75% and a revenue per available room of $192.
Edmonton came in last with a 59% occupancy rate and $86 in revenue per available room.
