In Garry Marr’s report for the Financial Post
, data from Colliers International Hotels revealed that the number of overnight visitors in Canada shot up by 7.5 per cent on a year-over-year basis in 2015, translating to a total of approximately 18 million people who went for Canadian hotels.
Furthermore, the average sale price of Canadian lodging grew by 23 per cent year-over-year in Q1 2016, hitting $97,000 per room. In British Columbia alone, this average sat at $110,500—a development that has been primarily fueled by investor demand.
“The numbers have just been exceptional,” HVS Canada managing director Carrie Russell said. “We have grown more than we did during the Olympics. It was only a month. But this has been happening for two years.”
In 2015, 77 per cent of hotel rooms in downtown Vancouver were completely sold out in the months outside of winter. HVS projected this figure to climb to 78 per cent this year, and then 79 per cent in 2017.
“There are a lot of things driving the market and number one is it’s a great destination. No offence to other cities in Canada, but people want to come here,” according to Steve Giblin, chief executive of SilverBirch Hotels & Resorts in Vancouver.
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Aside from being Canada’s least affordable residential real estate market, Vancouver has also established itself over the past few years as the country’s most expensive city for lodging, with hotel room prices being inflated by the low exchange rate between the loonie and the greenback.