Reliance Properties is moving forward with converting two office buildings into hotels, a rare move in a market where such conversions are often discussed but seldom executed. The Vancouver-based developer plans to transform 1111 West Hastings Street in Vancouver and 780 Blanshard Street in Victoria into hotels, targeting a 2029 opening.
Why these buildings were chosen
Reliance president and CEO Jon Stovell explained that most office buildings are not suitable for conversion. “I would say that out of 20 office buildings you might look at with that idea in mind, there might only be one or two that actually makes sense,” he said. “There’s a whole bunch of things that have to work perfectly. The amount of upgrading required, the floor plate size, the way the elevators are configured, the way the windows are configured, the ceiling heights.”
The Hastings Street building, built in 1966, is 13 storeys and will become a 180-room hotel developed with Quebec’s Germain Hotels. The Victoria building, built in 1949, features an art deco/art moderne design and will offer 126 rooms, replacing an earlier proposal for a hotel and highrise condo.
Market conditions driving the shift
Both cities are facing a hotel room shortage, and the buildings are in prime tourist areas. “The Vancouver and Victoria markets are the best performing hotel markets in Canada, in terms of occupancy and growth of average daily rate, and so you know a bunch of (hotels) will get built,” said Stovell. He noted that many developers are pivoting to hotel projects, but it’s uncertain how many will materialize. “I think there’s a chance that this cycle, we might build 2,000 rooms.”
The city of Vancouver is also taking steps to address the shortage, proposing new policies to speed up hotel construction and conversion projects. An old office building opposite St. Paul’s Hospital is being converted into a boutique hotel as demand outstrips supply.
Cost considerations and floor plate design
The Hastings building was purchased for $70 million in March 2025, and the Victoria building for $14.66 million in 2019. Stovell estimates the conversion cost could be $100 to $150 less per square foot than new construction, but when factoring in the purchase price, total costs are comparable. “Effectively the overall costs of land, the existing building, plus reno costs … aren’t materially less than building new,” he said.
A key factor for conversion is the floor plate. “The best type of hotel floor plate is like a train car or shoebox, with a hallway down the middle and rooms on each side,” Stovell explained. For a centre-core hotel like 1111 West Hastings, where elevators and stairs are in the middle, the floor plate should not exceed about 10,000 to 11,000 square feet.
