Vancouver hotels’ nation-leading 77% occupancy rate is translating into record prices for hotel properties.
A report from industry consultancy HVS International adds that the revenue per available room in Vancouver hotels is now at a record-breaking $156.84, which pales in comparison to the per-key price hotels are selling for.
In 2014, Vancouver hotels sold for an average of $190,802 per room.
This year’s sales are forecast to hit $230,342 per room and rise to $243,327 per room in 2016 and to $262,230 by 2018, “the highest ever for any market in Canada,” according to Carrie Russell, managing director of HVS Canada.
Hotel room prices are already eclipsing the average paid per suite for apartment buildings in Metro Vancouver.
Based on 26 transactions through 2015’s first half, the average Metro apartment building sold for $173,620 per door, according to Avison Young.
“Vancouver, at 77%, is maxing out what it can do in terms of seasonal occupancy levels,” Russell said.
“There will be a little bit of a new supply increase with the Trump opening, so we’re forecasting occupancy at 76% for the market next year, and then a 7% increase in the average room rate.”
The Trump International Hotel is expected to open in downtown Vancouver in 2016. •
