Why hotels are outperforming other asset classes in 2026
Carrie Russell Senior Managing Partner at HVS
The hotel sector is performing exceptionally well across Canada. After a strong 2025, with RevPAR reaching a historic high of $142.89, Canada’s hotel industry reported a second consecutive month of year-over-year performance increases in February this year, according to CoStar. In 2025, Vancouver had the highest RevPAR at $223.05 for the major markets, but its growth was one of the slowest, at 0.2 per cent. Vancouver’s critical supply shortage led the City to update its hotel policy last year to encourage the development of a diverse inventory. IS THE HOTEL SECTOR STRONG, OR ARE OTHER ASSET TYPES WEAK? According to Carrie Russell, Senior Managing Partner at HVS, the conservative lending environment and high development
As moderator of the session Unlocking opportunities in hotels and resorts: A look at this thriving asset class, Carrie Russell, senior managing partner at HVS, unpacks the highs — and lows — of the hotel industry in 2026
WE INVEST TO DRIVE LOCAL REAL ESTATE.
costs, which have historically included high land costs, are two key factors behind the low supply.
But perhaps the most significant factor, says Carrie, is the current performance of the condo and office markets.
“If developers could build in those two segments, I don’t think we would see hotel growth. We would see new projects, but not to the same degree. We’ve just got so many developers that are having to sit on their hands in the asset classes that they’re familiar with, and they’re having to come up with a way to pivot.”
Quartier Molson, Montréal
Thanks to the strength of the sector, lenders are also looking more favourably at the market, adds Carrie.
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