Vancouver crowned Canada's hottest hotel market as busy travel season looms
The busy travel season is just around the corner, and those planning on visiting Vancouver may want to book their hotels sooner rather than later.
Vancouver has held onto the title of hottest hotel market in the country, according to commercial real estate firm Avison Young’s recent report on 2025 Canadian hotel performance.
The Canadian hotel market report spotlighted Vancouver’s strong lead across key metrics, including average daily rates, revenue per available room, and overall occupancy rate.
Parq Casino Vancouver and the JW Marriott and Marriott’s The Douglas Autograph Collection hotels. (Kenneth Chan)
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“The Canadian hotel industry continued to demonstrate consistency and stability in 2025, following a return to pre-pandemic occupancy norms in 2024,” said Avison Young in its report.
“Vancouver emerged as the country’s strongest performing market, recording an occupancy rate of 78.4 per cent, an ADR of $284, and RevPAR of $223.”
In comparison, Toronto recorded a room occupancy rate of 75.6 per cent, Montreal 66.6 per cent, Ottawa-Gatineau 70.6 per cent, Calgary 66.5 per cent, and Edmonton 59.8 per cent.
Toronto’s average daily rate was $260.77 (revenue per available room at $197.09), Montreal’s was $234.01 ($155.87), Ottawa-Gatineau’s was $205.56 ($145.02), Calgary’s was $187.55 ($124.67), and Edmonton’s was $153.02 ($91.48).
The Westin Bayshore, Vancouver
According to Avison Young, Canada’s six major hotel markets recorded over $1.3 billion in hotel transactions in 2025, a three per cent jump from the previous year.
The commercial real estate firm also expects the nation’s hotel industry to maintain “modest growth” in 2026.
“Most Industry pundits believe that key performance metrics of RevPAR and ADR will continue to climb, albeit at a slower pace than in prior years,” explained Avison Young.
“New hotel supply will enter the market, especially high-quality inventory in major
urban centres, which helps meet pent-up demand and major upcoming events. We don’t anticipate this new supply to have a dramatic negative impact on occupancy levels.
“Overall, we expect sustained room demand increases and a stable outlook, supported by
continued domestic travel, the return of business and group travel, and a supportive investment environment for hotel real estate through the year.”
Pan Pacific Vancouver Hotel and Fairmont Waterfront Hotel in downtown Vancouver. (Alena Charykova/Shutterstock)
According to a recent City of Vancouver staff report, more than 5,800 new hotel rooms are currently proposed across 29 projects at various stages of the development pipeline. Most of these projects are in the municipal government’s proposal review process.
The total includes 14 rezoning applications representing 3,950 rooms, five development permit applications with 380 rooms, and four building permit applications covering 730 rooms. In addition, two projects comprising 130 rooms have recently been completed, while another four projects with 610 rooms are currently under construction.
FIFA has cancelled approximately 15,000 nightly room bookings in Vancouver over the full course of its tournament duration from June 11 to July 19.
Despite the fact that these rooms are now back to general inventory at major downtown hotels, the British Columbia Hotel Association does not expect “any significant change in hotel rates.”
“But the good news is, we are ready to welcome the world, and we have the hotel availability to do so,” said Paul Hawes, the British Columbia Hotel Association’s president and CEO, in an email to Daily Hive Urbanized.
In spite of the FIFA cancellations, this year is shaping up to be busy for Vancouver, with a record 1.4 million cruise ship passengers expected at Canada Place terminal in downtown Vancouver in 2026.
Harbour Air is also gearing up for its largest seasonal expansion ever, with several new routes from Vancouver to popular B.C. destinations and a major U.S. city.
The full Avuson Young Canada hotel market report can be found online.
With files from Kenneth Chan