What Happened

Reliance Properties announced plans on June 15, 2026, to convert two existing office buildings into boutique hotels in Vancouver and Victoria. The project at 1111 West Hastings St. in Vancouver involves a 13-storey building constructed in 1966, while the second site is a four-storey art deco building at 780 Blanshard St. in Victoria, built in 1949. Both conversions will retain the heritage features of the original structures and include new restaurants and bars. The Vancouver project is valued at $70-million and will result in a 180-room hotel. Construction is expected to begin later this year, marking a tangible step in a sector where significant talk has often lacked action.

Why It Matters

This announcement signals a shift in how developers are responding to Vancouver's commercial real estate landscape, specifically its status as having Canada's lowest office vacancy rate. By converting older office stock into hospitality assets, Reliance Properties is addressing the surplus of premium office space with a different type of demand. The move highlights the growing interest in hotel development as a viable alternative to residential conversions for certain property types. It also demonstrates how specific architectural eras, such as art deco and moderne, can be preserved and repurposed for modern tourism needs.

Local Vancouver / Burnaby Context

Vancouver's central business district has long grappled with the transition from a traditional office hub to a mixed-use environment. While residential conversions have been the primary focus of city policy and developer interest, hotel conversions offer a different path for revitalizing older commercial buildings. The city's low office vacancy rate makes premium office space a hot commodity, yet also creates pressure to find new uses for older stock that may not compete effectively with new builds. Projects like the one at 1111 West Hastings St. help maintain the vitality of the downtown core by bringing visitors and hospitality traffic to areas that might otherwise see reduced daytime activity. In Victoria, the conversion of the 780 Blanshard St. building supports the provincial capital's tourism economy by preserving heritage architecture while updating it for modern hospitality standards.

Market Impact

The conversion of office space to hotels adds to the short-term rental and hospitality supply in both Vancouver and Victoria, potentially impacting room rates and occupancy levels. For the office market, it removes older stock from the pool of available commercial space, which could slightly tighten vacancy rates further. For the residential market, it offers an alternative to the more common office-to-condo conversion model, suggesting that not all commercial buildings are suitable or desirable for housing. The $70-million investment in the Vancouver project indicates confidence in the hospitality sector's recovery and growth potential.

Builder / Developer Perspective

For developers like Reliance Properties, converting office buildings to hotels requires navigating complex structural and heritage preservation challenges. The ability to retain heritage features while adding modern hospitality amenities like restaurants and bars adds cost but also creates a unique product. The project at 1111 West Hastings St. demonstrates that even mid-century office buildings can be repurposed effectively. The decision to proceed with construction later this year suggests that financing and entitlements are sufficiently advanced, reducing the risk of the project stalling like many previous announcements.

BurnabyHouse Insight

The announcement by Reliance Properties and Germain Hotels to convert 1111 West Hastings St. and 780 Blanshard St. into hotels represents a pragmatic response to the shifting commercial real estate landscape. While residential conversions dominate the conversation, hotel conversions offer a viable path for older office buildings that may not be ideal for housing. The retention of heritage features and the addition of restaurants and bars create a unique product that appeals to tourists and locals alike. This project highlights the importance of flexibility in urban development, where buildings can serve multiple purposes over their lifespan. The success of these conversions will likely influence future decisions by other developers looking to repurpose office stock in Vancouver and Victoria.