Record summer hotel prices in Vancouver as FIFA World Cup 26™ nears

New insights reveal that hotel prices in Vancouver reached historic highs this summer in the wake of province-wide short-term rental restrictions. According to data from CoStar, the city's average daily hotel rate (ADR) climbed to a record peak of $330¹ in July, a 7 percent increase year-over-year-signalling that hotel stays in Vancouver may increasingly price out everyday travellers as the destination prepares to host for FIFA World Cup 26™ next summer.

Other insights for Vancouver include:

• The city's hotel rates are the highest in Canada-nearly double Toronto's ($170) and $200 more than the national average ($130)
• Vancouver's hotel rates have nearly tripled in just five years, rising from $120 to $330 per night-outpacing other cities in the province
• The three-month average rate throughout summer (June-August 2025) hit $300 for the first time
• In comparison, the ADR for Airbnbs in Vancouver remained significantly more affordable:
  • July 2025 ADR for one-bedroom Airbnb listings in Vancouver averaged approximately $200-roughly 40 percent lower than the city's $330 hotel ADR
  • Over summer (June-August 2025), the average Airbnb rate for a one bedroom was approximately $180 per night

Vancouver's hospitality promise at risk amid record hotel rates

The record-high hotel rates have also affected Vancouver's ability to host large-scale conferences and events. This summer, organizers of the International Convention of Alcoholics Anonymous had anticipated up to 60,000 attendees for this year's event, making it the largest in the city's history. In the end, only about 35,000 came, as people voiced frustrations about limited accommodations and unaffordable hotel prices-ultimately raising concerns about whether Vancouver can deliver on its promise to host major events as demand increases next summer.

Gregg H. Talley, CEO of Talley Management Group, which manages large international conventions in cities including Vancouver, confirmed this, saying the situation prompted concern across the conference and events sector:

"The City made a commitment to support events of this scale, yet current hotel pricing and limited availability make it increasingly difficult. There's growing concern across the global events community about whether future conferences will remain accessible and affordable for attendees. Vancouver has long prided itself on being a vibrant, welcoming, and world-class city-and we want to ensure it continues to live up to that reputation."

Gregg H. Talley, CEO, Talley Management Group

Preventing a tourism and pricing crisis in Vancouver

Temporarily reducing the cost and administrative burden to operate a short-term rental during the tournament would offer a practical solution by allowing the city to tap into existing homes for visitors, easing the accommodation crunch without the financial and environmental costs of rapid hotel construction.

Vancouver's current short-term rental rules are stricter than the province's. Vancouver hosts can only rent out their principal residence, not secondary suites or laneway homes, and they must also obtain a city business licence and meet additional local compliance requirements. With the City of Vancouver and the Province of British Columbia failing to move forward with a plan to make it easier to operate short-term rental during the tournament, travellers next summer could face the most expensive hotel prices in the city's history.

The new data around ADRs follows a recent Deloitte report, which warns that under current short-term rental regulations, Vancouver could see hotel rates skyrocket up to 200 percent and face a 70,000-night accommodation shortfall leaving fans stranded without a place to stay during the FIFA World Cup 26™. Without a plan to temporarily adjust the rules to operate, it's estimated that Metro Vancouver stands to lose over $78 million in economic opportunity, while the province could forgo more than $4 million in tax revenue.

Temporary exemptions: A lifeline for Kelowna's tourism economy

Deep in the heart of BC's wine country, Kelowna is also feeling the impact of over-regulation. The city has exceeded provincial housing targets and raised vacancy rates to their highest in 20 years, yet strict short-term rental rules are threatening local tourism. Businesses and tourism operators report that fewer accommodations and higher hotel prices are hurting their bottom lines.

To address this, local policymakers are proposing practical changes to allow greater flexibility for short-term rentals during major events that bring in extra visitors, as well as accelerating the timeline for communities that opt-out of the principal residence requirement. These updates would help Kelowna manage demand, support local businesses, and keep the tourism economy thriving while maintaining responsible oversight.

"Kelowna has proven it can manage its own affairs to balance housing and tourism, but one-size-fits all provincial rules are putting our summer tourism season at risk. The Province needs to move forward the effective opt-out date from November to May so we don't miss out on another summer. By allowing municipalities more flexibility around short-term rental rules during major events that create surges in demand for accommodations, we can keep our tourism economy alive, support workers, and deliver the world-class experience for visitors that they expect."

Gavin Dew, MLA for Kelowna-Mission, Critic for Small Business & Innovation

Province-wide record hotel prices following short-term rental law

The record hotel prices in Vancouver are consistent with rising hotel rates across British Columbia months following the most recent implementation of the province's short-term rental restrictions in May. Provincially, July hotel ADR hit a record $230-a 6 percent increase year-over-year and a 96 percent increase over five years.

Meanwhile, on Vancouver Island, Victoria is setting its own hotel ADR record, posting the province's steepest annual increase at 9 percent-now $280 per night in July.

Research shows Vancouver must increase its hotel room inventory by 70 percent by 2050 to meet rising demand, underscoring how limited capacity could impede the city's ability to attract major conferences and global events. Now, with Vancouver preparing to welcome the world for FIFA World Cup 26™, the urgent need for more accessible, reasonably priced accommodations could not be clearer.
Instead of leveraging available homes and helping local residents generate extra income, the city is exploring alternatives like university dorms and less sustainable cruise ship accommodations.

"FIFA World Cup 26™ will mark a once-in-a-lifetime event for Vancouver, but surging hotel rates and accommodation shortages threaten to leave thousands of fans without options. A temporary adjustment to rules for short-term rentals is the practical solution to ensure visitors aren't shut out by record-breaking prices and more locals can realize the economic benefits of hosting."

Alex Howell, Policy Lead, Canada, Airbnb

By maintaining restrictive short-term rental policies and rejecting a common sense solution, Vancouver risks turning away visitors, tourism revenue, and the chance to demonstrate true hospitality on the global stage. Making it easier for people to share their homes would help keep hotel prices in check and ensure everyone from sports fans to local families can experience and enjoy the best Vancouver has to offer.