Despite a weak Canadian dollar, rising unemployment and a shrinking national GDP, B.C.’s hotel industry appears to be showing a level of collective resilience not seen this decade.

CBRE Ltd. senior vice-president Nicole Nguyen with the brokerage’s valuation and advisory services group told Western Investor that B.C. markets across the Okanagan and Interior, along with Vancouver Island, saw high occupancy and transaction rates over the summer on par with pre-COVID-19 levels.

“We're back to or beyond, in many cases, 2019’s peak industry performance from both the top line and, most importantly, on the bottom-line standpoint,” Nguyen said.

The metrics used to gauge the hotel industry’s pulse include occupancy and capacity rates, overall revenue, revenue per available room (RevPAR) and average daily rate (ADR), among others.

CBRE’s 2026 Hotels Outlook report issued Sept. 15 indicates that B.C.’s hotel sector is outpacing every other region in the country.

Province-wide occupancy levels have consistently sat around 70 per cent since 2023, while ADR numbers were pegged at $252 million – a significant jump from 2019’s five-year low of $192 million. B.C.’s RevPAR numbers also reached a five-year high: $178 million this year compared to $136 million in 2019.

Ontario and Quebec’s occupancy rates hovered between 66 and 67 per cent; ADR numbers were at $210 and $233 million respectively; and RevPAR stats place Ontario at $141 million and Quebec at $153 million.

Nguyen said two major factors are driving the provincial sector’s recent success: fewer domestic travellers headed to the U.S. and less wildfire disruption.

While the 2025 wildfire season was vast in scope, its impacts didn’t include widespread displacement or trip cancellations. Tofino, Victoria and southern Vancouver Island, Kamloops and Kelowna and the Rocky Mountain region straddling the B.C.-Alberta border all performed well, Nguyen said.

The Metro Vancouver-wide snapshot was somewhat sluggish on the transaction side largely due to the nature of the owners. As Nguyen explains, those assets are often held by large, private investors or long-term owners such as pension funds.

New builds in major metro markets are also hampered by land, input and labour costs, along with the time it takes to get to market, and investor risk. When activity in those major markets see an uptick, it’s most often the purchase of existing properties rather than new builds.

“It's incredibly difficult to get an asset in Vancouver and it's the same in Toronto,” Nguyen said. “Once you have [a hotel property], it's rare that they transact and that's just because of the style of ownership.”

Macdonald Commercial Real Estate Services Ltd.’s Nick Goulet is the only commercial agent based on the west coast of Vancouver Island. As of mid-September, Goulet’s firm was overseeing the sale of the Tofino Motel Harbourview, a 13-room motel at the entrance to Tofino with an asking price of $6.2 million.

“Buyer activity in the hospitality market, especially with boutique hotels and motels like the Tofino Motel Harbourview, has been noticeably strong,” Goulet said. “I continue to see steady interest from groups both on and off the Island, and I’m speaking with buyers on a regular basis about opportunities here.”

Goulet has seen considerable uptick from lifestyle buyers wanting income properties in coastal locations who are largely unbothered by the geopolitical unease between Canada and the U.S.  

“I've experienced a notable amount of interest from U.S. investors on various investments,” Goulet said. “The buyers I’m dealing with are focused more on the long-term appeal of the Island.”

Further south down the Island, JBW Commercial broker Harry Jones recently helped close a deal on Victoria’s iconic Bedford Regency Hotel. The purchaser paid $8.9 million, and Jones said plans are to maintain the property as a hotel operation.

Jones’ sense of the Capital Region market isn’t as bullish as his west coast counterpart – instead, Jones views the trends as “active, but selective.”

“The market isn't what it was a handful of years ago when things were flying off the shelf,” Jones said. “But we're still seeing a strong, strong amount of activity on the investment sale side of things.”

Jones’ tempered approach is shared by Nguyen as she looks forward to the rest of 2025 and into 2026.

Nguyen points to several precursors that could interrupt the travel and hotel sectors moving forward: the national GDP shrinking by 1.6 per cent in the second quarter and a rise in both unemployment and core inflation.

“Generally bookings are made 60 to 70 days out when most people make their decision about where they're going,” Nguyen said. “As the economic data starts continuing to shift, if the unemployment continues to rise and we continue to see really poor output out of the economy, the hotel industry will catch up fast. I can tell you that from other downturns, the tap turns off really quick in those situations.”

                                                                                                                             Jami Makan   Sep 4, 2025 7:30 AM

Notable deals and a sizable development pipeline indicate a robust self-storage market in Western Canada, where migration, density and business users are driving demand. 

Nearly four million square feet of new supply is expected in B.C. and Alberta together between now and 2028, said Antonio Balogh, national market intelligence lead with commercial real estate services firm Avison Young (Canada) Inc. 

New supply in B.C. represents 26 per cent of national self-storage construction, and in Alberta it represents 15 per cent, in both cases topping their existing market share in Canada, he said in a statement. 

“Today, we are seeing multiple demand drivers cementing a compelling long-term investment strategy for self-storage real estate, especially in Western Canada,” he said. 

Recent deals have included QuadReal Property Group LP’s purchase of Maple Leaf Self Storage Inc.’s 15-facility portfolio in B.C. and Alberta, a deal disclosed in May and estimated at close to $1 billion. 

U.S.-based SmartStop Self Storage REIT Inc. has also been an active player in Western Canada, acquiring a 74,000-square-foot facility in Kelowna in April for US$29.1 million and backing Strategic Storage Growth Trust III Inc.’s acquisition of a 52,500-square-foot East Vancouver facility in June for more than $35 million. 

SmartStop also recently acquired five properties in Alberta from Bluebird Self Storage, which made its own purchase of a newly built facility in Victoria in March for $26.7 million. 

“People need places to store things as the population grows and as the inventory of housing grows,” said Kirk Kuester, executive managing director in the Vancouver office of commercial brokerage Colliers Canada, which was involved in the East Vancouver deal. 

“Units are smaller and people are getting by with way smaller spaces to live in and way fewer storage options within their places,” he said. 

Self-storage is tied not just to migration and smaller housing, but also to warehouse availability. 

“We’ve seen a pretty large increase in commercial users of storage, especially in major metropolitan cores, because there’s a distinct lack of warehouse space,” said Patrick Wood, a partner with Victoria-based brokerage JBW Commercial Inc. 

Some retailers rent storage units for the months leading up to Christmas and then vacate them after the holiday season, he said. Meanwhile, some Fraser Valley companies are re-supplying their technicians who work in downtown Vancouver from nearby storage units, reducing travel time. 

“It’s a cost-saving thing. Because a lot of self-storage facilities are pretty well located, it really brings efficiencies to a lot of businesses,” Wood said. 

Avison Young’s Balogh said the adequacy of self-storage supply is based on the square footage of rentable storage space per capita. Ontario and B.C. lead the way at 32 and 31 square feet per capita, respectively. Alberta’s supply is relatively tighter at 25 square feet per capita, while Manitoba and Saskatchewan are below 15 square feet per capita, he said. 

“While new supply in Manitoba and Saskatchewan is more muted up to this point, the tight existing supply per capita creates potential for a quick spark,” he said. 

Those interested in entering the storage industry may see slightly higher cap rates “mostly because storage is an operating business,” JBW’s Wood said. 

Rental rate growth has stabilized to around 3 to 4 per cent a year, after big increases during the pandemic, he said. 

Yet self-storage requires “very active” management due to short-term leasing and the need for constant marketing, Wood added. 

Self-storage is an active, alternative asset class similar to student housing, senior housing and data centres, said Colliers’ Kuester. 

“They appeal to a unique investor, and it’s an investor that quite often is very focused strategically on alternatives,” he said.

A B.C. judge has upheld a Labour Relations Board decision that found grocery giant Sobeys Inc. obtains the majority of the profits and exercises “substantial financial control” over its franchised FreshCo grocery stores.

The Aug. 1 ruling represents a win for United Food Commercial Workers International Union, Local 1518, who had challenged the grocer and several franchisees—claiming they had attempted to escape an existing collective bargaining agreement through re-branding. 

In 2017, the union represented nearly 5,000 workers at Sobeys’ roughly 60 Safeway stores in B.C. The workers had a 10-year collective agreement that ran until 2023. Part of the agreement required further negotiations with the union if Sobeys sought to open stores under a new name. 

That year, the grocer gave the union notice it planned to convert up to a quarter of its existing Safeway stores in Western Canada into stores under the FreshCo banner. 

In 2018, the company told the union its planned restructuring would lead the company to close 10 B.C. Safeway stores and terminate the employees who worked there. Sobeys also said five of the stores may reopen as FreshCo locations pending negotiations of the collective agreement.

In negotiations with the union, the grocer sought to create single-store collective bargaining agreements. The dispute ended when an arbiter required a single province-wide agreement for both Safeway and FreshCo stores, in line with the union’s demands. 

A year later, Sobeys said it would continue closing several Safeway stores, converting them into FreshCo and other discount banners—this time under a franchise model, according to a recent judicial review. In 2019, Sobeys told the union to direct any labour relations issues to the new owners of the stores. 

The union then took Sobeys and five of the franchised stores to the Labour Relations Board, where it sought to maintain the B.C.-wide collective agreement. 

In its original decision, the board found Sobeys used contractual arrangements, clearly interdependent operations, and common management to exercise “substantial control” over the FreshCo franchisees. It granted the union’s application and declared Sobeys and the franchisees to be a single employer. 

Sobeys challenged the decision before the Labour Relations Board’s reconsideration panel. In a June 26, 2024, decision, the panel re-examined two questions: whether the entities were under common control and direction; and whether there was a labour relations purpose served in making the declaration. 

Among other things, Sobeys submitted evidence it said showed the franchisees operate as business competitors with conflicting interests.

Ultimately, however, the reconsideration panel was not persuaded that the board had erred in its original decision and reiterated that Sobeys exercises substantial control over the franchisees’ FreshCo stores.  

Sobeys and the franchisees then escalated the dispute to the B.C. Supreme Court.

In her judicial review, Justice Francesca Marzari found the reconsideration panel’s decision was entirely within their expertise. The panel members were “clear and comprehensive” when it set out “a rationale for its decision on the fundamental question of common control” of the companies, wrote the judge in the decision handed down last week but released Tuesday. 

Marzari once again rejected arguments that individual franchisees must exercise control over each other to show a group of companies has common control or direction as a single employer.

“This court only interferes with such decisions where the reasoning or result borders on the absurd,” wrote the judge.

Marzari dismissed the application for judicial review and ordered Sobeys and the FreshCo franchisees to pay the union's legal costs.

espite concerted efforts to expand the level of safe and affordable child care in B.C., advocates estimate three-quarters of children in the province do not have access to licensed child care, and less than three per cent are receiving care for $10 a day.

Those numbers fall short of the provincial government’s commitment eight years ago to establish universal, affordable child care, according to the Coalition of Child Care Advocates of BC, which has renewed its 14-year-old campaign for $10-a-day child care in British Columbia amid long waitlists.

“There isn’t a client that has approached us who doesn’t have a whopper waitlist,” said Brian Wakelin, architect with Vancouver-based Public Architecture + Design Inc.

But delivery more daycare supply is challenged by B.C. real estate realities, including space scarcity, and limited or complicated funding options.

For example, while it may seem logical to include daycares in mixed-use developments, an increasingly prevalent development choice in the Lower Mainland, a separate financing and governance structure may be required for that daycare component. Daycare spaces also have unique needs, such as a rooftop playground and dedicated elevators, experts say.

“You’re trying to get ideally good sun access, good pickup and drop-off and things like that, and sometimes those just take a little bit more planning, a little bit more imagination and consideration with mixed-use developments,” Wakelin said.

He said daycares should ideally be located near employment and housing areas, and should be developed in bundles or clusters to accommodate a mix of age ranges.

Besides square footage, perhaps the biggest barrier to rapid growth is a high degree of regulation. Due to prescribed target sizes, staffing ratios, kitchen sizes and washroom sizes, the industry is “quite carefully controlled,” he said.

“Licensed child-care facilities in B.C. [are] taken very seriously. There are all sorts of standards,” Wakelin said.

“There’s actually a whole body that oversees licensing and child-care facilities,” which reviews daycare plans and buildings before, during and after construction, he said.

Things inspectors check for include sight lines for staff; no sharp edges, protrusions or hiding places; and access to adequate outdoor space. “Washroom design for child cares is like a whole industrial design exercise,” he added.

Provincial child-care efforts in detail

While all levels of government are involved in expanding child care, the province is the main player.

Since 2018, the province has funded the creation of 40,900 new licensed child-care spaces, with 24,900 of these spaces open and providing care. There are also 160,000 children in B.C. whose families are benefiting from the province’s child-care affordability programs, according to a statement from the Ministry of Education and Child Care.

The families of 16,000 children are paying $10 per day for that care, according to the province. As of May 2025, the families of 144,600 children are saving up to $900 a month through B.C.’s Child Care Fee Reduction Initiative, with 96 per cent of eligible spaces participating and offering reduced rates.

Some families receive additional help. According to the province, the Affordable Child Care Benefit (ACCB) is further reducing fees for 34,900 children each month. Available to families earning $111,000 or less, ACCB can be combined with other programs to bring costs down to $0 for some families.

“Together, these affordability programs have reduced average child-care fees for families with children 12 years and under from $47 per day before fee reductions to approximately $19 per day across the province,” said the ministry’s statement. 

The types of child care available in B.C. vary widely.

Some facilities are operated by institutions, non-profits and community centre associations. One example is the new Fulmer Family Centre for Childhood Studies at Capilano University, which was designed by Public Architecture + Design and includes an integrated 74-space daycare.

On the other end, small operators do not need a permit or licence if they are providing care for up to two children (or three or more children who are siblings) and there are no renovations made to the home.

In the middle are private facilities that combine supervision and education, such as Vancouver-based CEFA Systems Inc. and Nova Scotia-based Willowbrae Academy.

When it opens in Delta in late fall 2025, Willowbrae will operate the city’s largest daycare facility at 11,470 square feet and the capacity to care for 166 children. Preet Gill, CEO of the academy, said finding a suitable location was the hardest part. 

“There’s very limited commercial space right now. You also want to be very particular what area you’re having this daycare in. Is it too busy? You don’t want it to be too dense or a city centre-type area. That’s not safe for children,” she said.

Financing can also be tough. Not all banks are willing to work with or lend enough money to borrowers who don’t have a track record of operating daycares, she said. 

Fortunately for Gill, Willowbrae supports its franchisees in various ways. “Even in the construction phase, we do weekly meetings, even as of right now, so they’re very hands-on,” she said.

“They have a very tailored step-by-step program for the owners themselves.”

Harp Khela, president of Khela Real Estate Group, brokered the Willowbrae Academy deal in Delta. He said there are two big things B.C. municipalities can do to enable more daycares.

The first is to follow Delta’s example of pre-zoning all of its commercial zonings so that they are pre-approved for daycares, giving operators one less thing to worry about.

Second, cities should lower or eliminate community amenity contributions (CACs) for daycares, as is currently done to incentivize rental housing.

“If there’s no CACs being charged for that square footage, there’s that much more of an incentive for the developer to say, ‘Hey, let’s build more square footage and let’s add another floor … and let’s put a daycare there,’” he said.

On June 24, the Coalition of Child Care Advocates of BC re-launched its “$10aDay” campaign for universal, affordable, quality child care in B.C.

Participants say the campaign, which dates back to 2011, is being brought back because of “a failure by the province to deliver on its commitment.”

In 2017, then-premier John Horgan committed to “affordable universal child care.”

Gregson said B.C. has about 600,000 children aged 0-12 years, but just 160,000 licensed spaces, only 16,000 of which officially offer care for $10 per day.

That means as few as 2.7 per cent of B.C. children are receiving $10-a-day care.

“For a few years, there was significant progress in making affordable child care available to more B.C. families, and improving wages for educators. That progress has now stalled,” said Sharon Gregson, a coalition spokesperson.

With just three years remaining in the government’s 10-year plan, she said the province has “flatlined” provincial child-care funding in its last two budgets, with no new provincial funds committed to achieving the promise of quality, universal $10-a-day child care by 2028.

“If you’re lucky enough to get a licensed child-care space, you’d have to be, on top of that, a lottery winner,” she said.

Jami Makan jmakan@biv.com

1. Mobile Car Detailing or Eco Car Wash

• Why: Vancouverites love their cars and the environment.

• Start-up Needs: Equipment ($15K), branding & website ($5K), van lease ($10K), licenses & marketing ($5K)

• Highlights: Low overhead, scalable, high demand in condos and office districts

• Bonus: Promote as a waterless or eco-friendly service

2. Home Organization & Decluttering Service

• Why: Popular with urban professionals, downsizing retirees, and busy families.

• Startup Costs: Equipment & supplies ($5K), website + ads ($5K), vehicle or transit pass ($2K), insurance & admin ($3K)

• Opportunities: Partner with realtors and staging companies

• Extras: Offer digital organization or minimalism coaching

3. Pet Care Business (Mobile Grooming, Dog Walking, or Pet Sitting)

• Why: Vancouver is extremely pet-friendly.

• Startup Budget: Marketing ($5K), licensing ($2K), equipment ($5K), website ($3K), van lease optional

• Scalability: Add grooming or training services later

• Niche Add-On: Organic or handmade pet products

4. Boutique Cleaning Business (Eco or Specialized)

• Why: High-density residential areas and eco-conscious consumers

• Start-up Budget: Cleaning kits & uniforms ($5K), insurance ($3K), website & branding ($5K), marketing ($5K)

• Niche Option: Focus on post-renovation, Airbnb, or seniors

• Scalability: Easy to grow team-based model

5. Online or Pop-up Specialty Food Business

• Examples: Vegan treats, Asian fusion snacks, gluten-free baked goods

• Startup Needs: Cottage license or commissary kitchen rental ($10K), product dev & branding ($10K), pop-up equipment ($5K)

• Where to Sell: Farmers markets, Granville Island, Instagram

• Bonus: Partner with local cafés or food delivery platforms

6. Digital Marketing Consultancy (Niche: Real Estate, Wellness, Local Retail)

• Why: High demand from small businesses with weak digital presence

• Skills Needed: SEO, social ads, Google My Business

• Startup Use: Branding + website ($5K), software tools ($5K), networking events & workspace ($3K)

• Scalable Model: Freelancer to agency model

7. Health & Wellness Coaching (Mobile or Online)

• Popular Niches: Nutritionist, fitness coach, mindfulness guide

• Budget Plan: Certifications & liability insurance ($5K), branding & client platform ($10K), ads ($5K)

• Target Market: Professionals, moms, retirees, immigrants

• Add-On Ideas: YouTube, online classes, or group workshops

8. E-commerce Retail (Locally Made, Sustainable Products)

• Popular Ideas: Home goods, fashion, wellness kits

• Startup Budget: Inventory ($15K), Shopify setup & branding ($5K), marketing & influencer budget ($5K)

• Local Strength: Market through Vancouver artisan networks

• Bonus: Add in-person booth at markets or local collabs

9. Tourism Side Hustle: Guided Experiences or Walking Tours

• Startup Focus: History, culture, architecture, photography, Indigenous tours

• Startup Budget: Permits, branding, insurance, website ($5K–8K)

• Monetization: Airbnb Experiences, TripAdvisor, direct bookings

• Low Overhead: Just your expertise and a good story

10. Artisan Crafts or Customized Products (Etsy + Vancouver Markets)

• Examples: Jewelry, laser-cut wood, handmade candles, home decor

• Startup Costs: Equipment/materials ($10K), branding & e-commerce ($5K), market fees ($3K)

• Great Fit: Vancouver’s art-friendly scene & conscious consumers

📝 Tips for Success:

• Focus on Niche: Vancouver rewards highly specialized and value-driven businesses.

• Go Local & Sustainable: BC consumers strongly prefer local, eco-conscious businesses.

• Use Free Resources: Explore Small Business BC, Launch Academy, and Futurpreneur for mentorship and funding options.

1. Sustainable and Eco-Friendly Products

Business Concept: Launch a retail or e-commerce store specializing in eco-friendly products such as biodegradable packaging, sustainable fashion, and green consulting services.

Target Market: Environmentally conscious consumers and businesses in Vancouver seeking sustainable alternatives.

Revenue Streams: Product sales, consulting fees, and potential subscription boxes for eco-friendly products.

Marketing Strategy: Utilize social media, local eco-events, and partnerships with environmental organizations to build brand awareness.

Financial Projections: Aim for steady growth with a focus on reinvesting profits into expanding product lines and services. 

2. Health and Wellness Services

Business Concept: Establish a wellness center offering services like virtual wellness coaching, holistic health treatments, and mental health apps.

Target Market: Health-conscious individuals, including professionals and seniors, seeking comprehensive wellness solutions.

Revenue Streams: Service fees, membership subscriptions, and sales of wellness products. BPlan AI

Marketing Strategy: Leverage content marketing, partnerships with healthcare providers, and community workshops to attract clients.

Financial Projections: Project gradual growth with an emphasis on client retention and service diversification.

3. E-Commerce and Digital Services

Business Concept: Develop an online platform offering niche products or digital services, capitalizing on the growing e-commerce trend.

Target Market: Tech-savvy consumers and businesses looking for specialized products or services online.

Revenue Streams: Online sales, digital service subscriptions, and advertising revenue.

Marketing Strategy: Implement SEO strategies, social media advertising, and influencer partnerships to drive traffic. 

Financial Projections: Aim for scalable growth, with initial investments in platform development and marketing.

4. Renewable Energy Ventures

Business Concept: Offer renewable energy solutions such as solar panel installations, EV charging stations, and eco-friendly product retailing.

Target Market: Homeowners, businesses, and municipalities aiming to reduce carbon footprints.

Revenue Streams: Installation fees, maintenance contracts, and product sales.

Marketing Strategy: Engage in educational campaigns, attend green energy expos, and collaborate with environmental groups.

Financial Projections: Plan for long-term contracts and government incentives to support steady revenue.

5. Food and Beverage Industry

Business Concept: Open a food truck, specialty café, or restaurant offering unique and culturally diverse food options.

Target Market: Food enthusiasts seeking new culinary experiences in Vancouver's diverse food scene.

Revenue Streams: Food and beverage sales, catering services, and cooking classes.

Marketing Strategy: Utilize social media, food festivals, and local advertising to attract customers.

Financial Projections: Focus on high-traffic locations and quality offerings to ensure profitability.

6. Pet Care Services and Products

Business Concept: Provide pet grooming, boarding, and specialty pet products to meet the needs of pet owners. 

Target Market: Busy professionals, families, and elderly pet owners in Vancouver. 

Revenue Streams: Service fees, product sales, and subscription-based pet care packages.

Marketing Strategy: Engage with local pet communities, offer loyalty programs, and maintain an active online presence.

Financial Projections: Aim for steady client growth with a focus on personalized services. BPlan AI

7. Educational and Training Services

Business Concept: Establish language schools, tutoring centers, or IT training programs catering to both local and immigrant populations.

Target Market: Students, professionals, and newcomers seeking skill development.

Revenue Streams: Tuition fees, online course sales, and corporate training contracts.

Marketing Strategy: Partner with community organizations, utilize online advertising, and attend education fairs.

Financial Projections: Plan for gradual enrollment increases and course diversification.

8. Digital Marketing Agencies

Business Concept: Offer specialized digital marketing services, including SEO, social media management, and content creation.

Target Market: Small to medium-sized businesses seeking to enhance their online presence.

Revenue Streams: Monthly retainers, project-based fees, and performance bonuses.

Marketing Strategy: Showcase case studies, attend networking events, and leverage client referrals.

Financial Projections: Aim for consistent client acquisition and retention to ensure steady income.

9. Green Cleaning Services

Business Concept: Provide eco-friendly cleaning services using sustainable products for homes and offices.

Target Market: Environmentally conscious households and businesses in Vancouver.

Revenue Streams: Service fees, subscription packages, and sales of eco-friendly cleaning products.

Marketing Strategy: Highlight environmental benefits, obtain green certifications, and engage in community outreach.

Financial Projections: Focus on building a loyal customer base and expanding service areas.

10. Tour Guide and Event Planning Services

Business Concept: Offer personalized tour guide services and event planning for weddings, corporate events, and festivals.

Target Market: Tourists, corporations, and individuals seeking unique event experiences in Vancouver.

Revenue Streams: Service fees, vendor commissions, and package deals.

Marketing Strategy: Develop partnerships with local businesses, utilize online platforms, and attend trade shows.

Financial Projections: Plan for seasonal fluctuations with diversified service offerings.

Vancouver desperately needs 10,000 more hotel rooms but development is being held up, says a new report.

Just 12 new hotels have been built in the city over the last 20 years, and Vancouver has the same number of hotel rooms as it did in 2002, according to a Wednesday report from Destination Vancouver and the BC Hotel Association.

“Vancouver hotels are operating at near full capacity, with 80 per cent average annual occupancy and up to 95 per cent during peak seasons, well above rates in peer cities,” said a statement from the organizations.

“The lack of new capacity makes it increasingly difficult to attract major conferences and marquee events, and meet visitor demand.”

In fact, hotel supply has actually declined, the report found. Vancouver saw a net loss of hotel rooms between 2002 and 2022, largely due to hotel closures and conversions, although 4,200 rooms are now in the pipeline.

The groups said 10,000 new hotel rooms are needed in Vancouver by 2050, representing a 70-per-cent increase from today’s inventory.

If this target is met, the report said it would result in 5,450 direct local hospitality jobs; up to 8,000 indirect jobs in retail, events and services; $125 million in annual municipal tax revenue; and $78 million in provincial tax revenue.

The report offers recommendations to overcome development barriers, including deferring development charges, pre-zoning for hotel use in transit-oriented areas and pairing hotels with residential developments.

The drive to have additional hotel rooms in the city comes because Vancouver tends to have the most occupied and priciest hotels in the country.

CoStar data shows Vancouver hotels were on average 71.5-per-cent occupied in February, with a $216.16 average daily room rate. That compares with Toronto's 68.4-per-cent average hotel occupancy and $213.96 average daily room rate during the month.

Late last month, Vancouver's Reliance Properties and Montreal's Germain Hotels launched the city’s latest hotel proposal – one that would see a 12-storey office building at 1111 West Hastings Street get converted into a 180-room boutique hotel.

The site is zoned to allow hotel use as well as office, so no rezoning is needed.

"It would be just [needing] a minor development permit, just for any outside related work, and a building permit," said Reliance Properties CEO Jon Stovell. "It's very fast."

Destination Vancouver CEO Royce Chwin told BIV at the time that the project goes a long way towards addressing the city's hotel shortage.

–With files from Glen Korstrom

jmakan@biv.com

x.com/jamimakan

jamimakan.bsky.social

VANCOUVER, BC — April 3, 2025 — In aggregate, commercial transaction volumes in the Lower Mainland finished 2024 at the lowest level recorded in over a decade, down roughly seven per cent from 2023 which previously held this un-prestigious record.

The Greater Vancouver REALTORS® (GVR) reports that commercial real estate transactions in the region totalled 1442 in 2024, a 7.0 per cent decrease from the 1551 sales recorded in 2023.

The total dollar volume of commercial transactions in the Lower Mainland for 2024 was $9.589 billion, a 13.2 per cent increase from $8.471 billion in 2023.

“2024 was a year marked by turbulence and uncertainty in the commercial market, unusually situated against a backdrop of easing borrowing costs” Andrew Lis, GVR’s director of economics and data analytics said. “From worries about a potential recession, to the increased capital gains inclusion rate, to the more recent concerns over tariffs brought about by the new U.S. administration, 2024 had its fair share of headwinds and the year-end totals we are seeing now are representative of that.”

Annual sales and dollar volume totals for 2024 for each asset class were as follows:

Land: There were a total of 407 commercial land sales in 2024, a 5.6 per cent decrease from the 431 land sales in 2023. The dollar volume of land sales was $4.283 billion in 2024, a 7.8 per cent increase from $3.975 billion in 2023.

Office: There were a total of 230 office sales in 2024, a 28.8 per cent decrease from the 323 office sales in 2023. The dollar volume of office sales was $888 million in 2024, a 45.7 per cent increase from $609 million in 2023.

Retail & Other: There were a total of 318 commercial retail (& other) sales in 2024, a 12.4 per cent increase from the 283 retail (& other) sales in 2023. The dollar volume of retail sales was $1.330 billion in 2024, a 31.6 per cent increase from $1.010 billion in 2023.

Industrial: There were a total of 401 industrial sales in 2024, a 9.7 per cent decrease from the 444 industrial sales in 2023. The dollar volume of industrial sales was $1.806 billion in 2024, a 13.3 per cent decrease from $2.084 billion in 2023.

Multi-Family: There were a total of 86 multi-family sales in 2024, a 22.9 per cent increase from the 70 multi-family sales in 2023. The dollar volume of multi-family sales was $1.283 billion in 2024, a 61.7 per cent increase from $793 million in 2023.

“The aggregate figures for the year mask a few pockets of resilience in the market, with multi-family, retail, and to a lesser extent, land deals holding steady or increasing year-over-year. Part of the activity in the multi-family segment was driven by government purchases of multi-family buildings, so we should be cautious of overstating the strength in that segment in particular. With that said, considering the significance of the headwinds the market has faced in 2024, these segments had a more impressive showing than the office and industrial segments.”

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  With the rapid adoption of artificial intelligence, businesses offering AI-driven tools and consulting services are in high demand. Opportunities include developing automation tools, AI-driven marketing platforms, and providing AI integration consulting.

• Green and Sustainable Building Services
  Vancouver's commitment to sustainability has led to a surge in demand for eco-friendly construction and retrofitting services. Businesses focusing on green building technologies, energy-efficient retrofits, and sustainable construction practices are poised for profitability.

• Digital Marketing Agencies Focused on Niche Markets
  As businesses strive to enhance their online presence, specialized digital marketing agencies targeting specific industries or demographics are thriving. Services in SEO, content creation, and social media management tailored to niche markets are particularly lucrative.

• SaaS (Software as a Service) Platforms
  Developing subscription-based software solutions for business operations, such as project management, HR, or data security, offers scalable income with high-profit margins.

• Health and Wellness Tech
  The growing emphasis on health has increased demand for telehealth platforms, personalized nutrition services, and mental health apps. Businesses in this sector can capitalize on the trend towards digital health solutions.

• Real Estate Investment Companies
  Investing in real estate, including short-term rental management, co-living spaces, and senior housing developments, continues to be a profitable venture due to consistent property value appreciation.

• Pet Services and Products
  With pet ownership on the rise, businesses offering pet grooming, boarding, and specialty pet products are experiencing significant growth.

• Food Truck Business
  The food truck industry in British Columbia is booming, with annual revenues ranging from $250,000 to $500,000. This mobile business model offers flexibility and lower startup costs compared to traditional restaurants.

• E-commerce for Sustainable Products
  Launching an online store that sells eco-friendly products, such as sustainable fashion or biodegradable packaging, aligns with consumer trends towards environmental consciousness.

• Online Courses and Educational Services
  The e-learning market is expanding rapidly, with opportunities to create and sell online courses in various fields. This business model offers low overhead and the potential for passive income.

As the Canadian hotel industry stabilized in 2024, Vancouver stood out from the pack as the nation’s strongest hotel market.

Among major Canadian markets last year, Vancouver had the highest performance in terms of occupancy (78.2 per cent), average daily rate or ADR ($285.21), and revenue per available room or RevPAR ($223.09), according to a Tuesday report from Avison Young (Canada) Inc.

Vancouver bested other hotel markets like Calgary, Edmonton, Toronto, Ottawa and Montreal.

Despite Vancouver’s domination, Edmonton showed momentum, with the highest year-over-year growth in some performance measures. Edmonton’s occupancy grew 3.4 per cent, compared with Vancouver’s negative growth of 0.4 per cent. Edmonton’s RevPAR also grew 10.2 per cent, compared with Vancouver’s 6.6 per cent growth.

Avison Young said Tuesday there is growing demand for hotel assets, and that the volume of deals spiked last year. In 2024, major Canadian markets recorded nearly $1.3 billion in hotel transactions, a 46-per-cent increase from the previous year and an 88-per-cent surge compared with 2019.

“Despite economic headwinds, the sector demonstrated remarkable resilience, achieving its highest transaction volume since 2017 and exceeding the 10-year average of $1 billion,” said the report. 

The report acknowledged that 2024’s transaction count of 56 came in below the historical average of 76. 

“Provided economic trade wars don’t dramatically disrupt the industry, market performance in 2025 is expected to reflect stabilized levels through the year with moderate growth in both ADR and occupancy,” the report said.

The commercial real estate services firm flagged other variables, such as Canadian families curbing non-essential expenses such travel amid inflation. On the other hand, a declining loonie could attract leisure and corporate travel from abroad. Also, budget hotels face more challenges than luxury hotels amid a “flight to quality.”

Nonetheless, Avison Young said the overall hotel investment climate in Canada is “sound.” 

“There are several willing debt and equity participants that are interested in the sector,” the report said. “As income levels normalize across a range of property types, reasonable buyers and sellers will find the best investment opportunities.”

jmakan@biv.com

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