Hotel vacancy on the rise in Calgary: report

Canada
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A new report suggests hotel vacancy rates are on the rise in Calgary.The report from the CBRE, a hotel firm, shows a correlation between the increase in hotels being built in the city and a decrease in demand for renting hotel rooms.It’s a decrease that the Calgary Hotel Association said is warranted.READ MORE: $100 million hotel planned for downtown Calgary“Obviously, numbers are down since 2014 when the business travel was really high,” said Peggy Athans with the CHA on Monday. “But we also have way more rooms now, so we’re selling more rooms but we have a bigger supply.”Now, Greg Kwong with the CBRE is suggesting that Calgary slows the building of hotels until the market evens out.“We’re just creating a little bit of a red flag that perhaps we should stop building these hotels in the short term,” Kwong said.READ MORE: Downtown Calgary office building owners get creative to fill floorsKwong and the CBRE note there is a correlation between the downturn in the oil and gas industry and a lack of people and businesses looking to rent hotel rooms.“It’s been pretty tough as far as attracting guests up here that are actually doing business,” Kwong said.

The CBRE says the city has seen a decrease in the number of hotel rooms in Calgary, mostly due to the fact that hotels continue to pop up with a lack of people looking to book them.

The CBRE says the city has seen a decrease in the number of hotel rooms in Calgary, mostly due to the fact that hotels continue to pop up with a lack of people looking to book them.Cody Coates/Global News
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