In June, hotel room rates in Vancouver remained high despite a decrease in occupancy. According to data from CoStar, visitors paid an average of $336.53 for a hotel room night, marking a 5.5% increase from the previous year. This makes Vancouver the priciest city in Canada for hotel stays for the second consecutive month.
The city saw the third-highest average nightly rate in its history, coming close to tying the record set in September. The high prices in Vancouver could potentially deter some visitors from choosing the city as their destination.
In comparison, Montreal and Toronto followed Vancouver as the second and third priciest cities for hotel stays in June. Montreal saw a slight increase in rates, while Toronto experienced a decrease in room prices.
One notable change was observed in Edmonton, where hotel room rates jumped significantly. This increase could be attributed to dynamic pricing strategies and the interest in the Edmonton Oilers’ playoff games during the month.
Downtown Vancouver topped downtown Toronto as the most expensive location for hotel stays, with rates increasing compared to the previous year. Despite the high prices, Vancouver saw an increase in available hotel rooms in June, indicating a positive trend in the tourism sector.
However, hotel occupancy in Metro Vancouver experienced a decline in June, with a significant drop in the Vancouver Airport hotel submarket. The ongoing strike by Unite Here Local 40 workers outside the Radisson Blu Vancouver Airport hotel may have contributed to the decrease in occupancy in this area.
The Fraser Valley also saw a drop in hotel occupancy, following a similar trend to the Vancouver Airport submarket. The Holiday Inn Express & Suites Chilliwack East, which was closed last year, contributed to the change in occupancy rates.
According to Laura Baxter, CoStar’s national director of hospitality analytics, the decrease in hotel room nights purchased in Metro Vancouver could be due to the waning trend of post-pandemic pent-up travel demand. As people prioritize their spending differently and tighten their budgets, travel expenditures may be reduced.
Overall, Vancouver remains a top destination for travelers, despite the high hotel room rates. The city’s diverse offerings and attractions continue to attract visitors, contributing to the overall tourism industry in the region.