Interest Rates Low for Q3 in Vancouver, BC
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A Closer Look into B.C.’s Hot Hotel Market
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(Posted on Jul 13, 2016 at 07:01PM by Michelle Bogle)
As we embark on the second-half of 2016, the outlook for British Columbia’s hotel industry is looking very optimistic. In fact, a strong performance in the first half of the year has many commercial real estate investors eyeing Vancouver’s hospitality market.
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In Q1 2016, high room rates and occupancy figures became the norm in Vancouver, where the revenue per available room rose an impressive 16%. Prior to that, B.C. hotel profits were up 28% in 2015 and are expected to grow an additional 13% in 2016.Â
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Hotel investment continues to concentrate within Metro Vancouver with prices for downtown assets reaching record levels, like the $548,000 per room price paid for the Westin Bayshore in Q4 2015.Â
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Favourable foreign exchange has been a key driver of B.C.’s hospitality market, especially as many film and television production houses have descended upon Metro Vancouver. The low dollar has also encouraged leisure travel from neighbouring states, which has had a direct impact on the hotel industry.
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In 2016, more visitors are expected from abroad from traditional markets, such as the Unites States, the United Kingdom, Australia and Germany, with continued growing interest from China.
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With this expected influx of visitors comes a stronger demand for hotels in downtown Vancouver and the Richmond/Airport areas. Burnaby, Surrey and Langley will also benefit from higher room rates as the regional average increases.Â
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This is also promising news for tourist destinations within the Sea-to-Sky corridor, including Whistler and Blackcomb, which is undergoing a major $345 million renaissance project.Â
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To learn more about commercial real estate opportunities within Vancouver’s hospitality market, please contact our office to speak with our team of skilled advisors. You can also view featured property listings by clicking here.
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