FIFA World Cup Hospitality: The number of hotel rooms in Vancouver is shrinking. One of the most noticeable examples is the demolition of the well-known Four Seasons hotel near the Pacific Centre. The 372-room hotel closed five years ago for renovations. But the decision became permanent when Cadillac Fairview announced plans to demolish the 49-year-old building.
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The site will be redeveloped into a mixed-use space that aligns with the city’s business and shopping districts. Royce Chwin, CEO of Destination Vancouver, is working with a group to bring new hotel investments to the city. We need more hotel rooms, not fewer, Chwin emphasized. He pointed out that Vancouver successfully attracts tourists. However the limited number of rooms creates a major challenge in meeting demand.
This is similar to the challenges expected for CANADA Hospitality during the FIFA World Cup 2026. Where a shortage of accommodations could impact visitors seeking Football World Cup Hospitality packages. Efforts to encourage hotel development are showing results. Since raising concerns, there has been increased interest in investing in Vancouver’s hotel market.
FIFA World Cup Hospitality: Will Vancouver Have Enough Hotels for FIFA 2026 Fans?
CANADA research firm Lodging Econometrics reported a record 59 hotel projects in progress across British Columbia last summer, potentially adding 8,439 rooms. However, only a small fraction of these are currently under construction. Data from HVS Canada at the Western Canadian Lodging Conference showed that 30 projects with 5,500 rooms were proposed for Vancouver. Although just two projects with 163 rooms were under construction.
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Similarly, in Richmond, where Vancouver International Airport is located, 15 hotel projects have been proposed, with a potential 3,500 rooms. However, only one hotel with 112 rooms is currently being built. This is a growing concern for future events like the FIFA World Cup 2026. Where Football World Cup Hospitality demand will require significantly more accommodations. So particularly for those purchasing Tickets for World Cup Hospitality.
Vancouver has lost many hotel rooms over the years. A 2022 report by MNP for Destination Vancouver revealed that the city had 13,290 hotel rooms, down from 15,242 in 2002, a 13% decline. The situation is even worse across Metro Vancouver. Where hotel rooms dropped from 14,424 in 2011 to 10,200 in 2022, and a 29% reduction.
Football World Cup Hospitality: Rising Demand for Canada Hotels in FIFA 2026
As global travel increases, particularly with major sporting events like the FIFA World Cup 2026. The need for more Canada Hospitality options grows. Tourism is recovering quickly. According to the World Travel and Tourism Council, global business travel exceeded pre-pandemic levels by 6.2% last year. Many travelers now combine business and leisure, known as bleisure, increasing the need for hotels.
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MNP previously predicted that by 2026, Vancouver’s hotel demand would surpass supply. So coinciding with major events like the FIFA World Cup. World Cup Hospitality services will need to ensure visitors have proper accommodations, as high occupancy rates will create challenges. However, building new hotels in downtown Vancouver is expensive.
Bosa Properties has hotel projects in both downtown and the Broadway corridor. Although estimated that constructing a four-star hotel costs around $900,000 per room. Due to these high costs, many hotel developments are shifting to suburban areas like Richmond. Although close to Vancouver International Airport, and Metrotown in Burnaby, which offers rapid transit connections.
FIFA World Cup Hospitality: Repurposed Buildings to Boost Hotel Supply
One example of this shift is the sale of a 10-story commercial podium at the Highline development to Mundi Hotel Enterprises Inc. Originally planned for office space, the 70,000-square-foot property was approved last November for conversion into a 159-room Hyatt Place hotel. It is set to open this year, demonstrating a trend of repurposing buildings for hotel use.
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This trend could also impact FIFA World Cup Hospitality plans. Existing office buildings may be converted into accommodations for visitors attending the 2026 World Cup. Cadillac Fairview’s decision to replace the Four Seasons hotel with an office space highlights the ongoing transformation of Vancouver’s hospitality industry.
Developers are increasingly seeing hotels as valuable assets, ranking them as the fifth most-favored investment category out of 14. So according to Deloitte’s 2025 Commercial Real Estate Outlook. This shift is also influencing plans for FIFA World Cup 2026 Hospitality. Where investors may focus on repurposing existing buildings rather than constructing new hotels from scratch.
Hotel Conversions Gain Momentum in Vancouver
Some developers who initially proposed residential or mixed-use projects are now seeking permission to convert portions of those buildings into hotels. David Ferguson, director of development with Coast Hotels, noted this trend at the Western Canadian Lodging Conference. He pointed out that high construction costs in downtown Vancouver make suburban areas more attractive for new hotel developments.
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This strategy could also benefit World Cup Hospitality planning. Where nearby cities and suburban locations might become key areas for additional accommodations. For those looking to invest in Vancouver’s hotel industry, existing properties and conversions are often preferred over new builds due to lower costs and faster turnaround times.
Marriott International’s Duncan Chiu explained that conversion projects are more appealing due to reduced construction risks. Marriott partnered with Synvest Capital Corp. to transform a century-old office building at 576 Seymour St. into a 73-room Arts and Crafts Hotel, set to open next year. Such conversions could serve as a model for FIFA World Cup Hospitality, where quick solutions are needed to accommodate the surge in visitors.
FIFA World Cup Hospitality: Can Hotel Conversions Meet 2026 Demand?
Another conversion project underway is Otto’s House, a 36-room hotel being developed in 30,000 square feet of former office space at 225 Smithe St. Vancouver’s office market remains stable, but repurposing commercial buildings into hotels is an efficient solution to meet increasing demand. The FIFA World Cup 2026 could see similar trends, as cities across the CANADA prepare to welcome fans looking for World Cup Hospitality accommodations.
In other cities, such as Calgary, office-to-hotel conversions have received municipal incentives. While Vancouver doesn’t currently offer such programs, adjustments to commercial space indicate a shift in demand rather than economic distress. James Scott of PBA Group emphasized that repurposing existing buildings is often more cost-effective than new construction.
PBA is transforming a former office building in Calgary into a 226-room Element Hotel by Westin, demonstrating that conversions can be a viable solution for meeting hospitality demands. This could also be beneficial for FIFA World Cup 2026 Hospitality, where investors may prioritize quick turnaround projects to meet accommodation needs.
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