With hotel occupancy rates across British Columbia surging beyond 70% province-wide and nearing 90% in Metro Vancouver, finding a place to stay is becoming more challenging for visitors. As demand continues to outpace supply, particularly in Metro Vancouver, this presents a golden opportunity for investors. Enter Surrey—an untapped hotspot for hospitality development poised to capitalize on the growing demand for new hotel accommodations.
Surrey’s Transformative Growth
Surrey, BC, is in the midst of a transformation. With more than 80% of the local population supporting growth in tourism, a terrifically high number comparatively, developers, and the business sector, the city is primed for hotel development and other hospitality infrastructure. The demand for modern hotels, convention centers, and entertainment venues is undeniable. Surrey is positioning itself as the region’s next big tourism and hospitality destination—and the time to invest is now.
The Smart Choice for Investors
Strategically located just 45 minutes south of downtown Vancouver and minutes from the U.S. border, Surrey is emerging as a dynamic hub for both leisure and business travelers. The city benefits from a rapidly growing population, a diverse community, and a robust economy, making it an ideal destination for tourists and business professionals alike.
The resurgence of Canada’s tourism sector is in full swing, with 2023 marking a strong recovery. Metro Vancouver alone is expected to host over 11 million visitors in 2024, and Surrey is well-positioned to capture a share of this demand. Over the next several years, Surrey's hotel industry is poised to grow alongside the rising tourism and business travel activity in the region. In 2023, tourism revenue surpassed pre-pandemic levels, and with an annual growth rate of 5.8% projected from 2024 to 2030, the outlook for the industry remains robust.
Surrey’s hotel market is evolving to meet the needs of all kinds of visitors. Upscale properties in our downtown and commercial cores cater to business professionals and high-income visitors, while family-friendly accommodations and event-focused hotels are supporting longer stays tied to Surrey’s growing calendar of cultural and sporting events. Although Surrey offers a diverse range of accommodations, the growing demand for hotel rooms in Metro Vancouver, expected to outpace supply by 2028, highlights the need for additional options.
Why Surrey is the Destination for Today’s Traveler
Vibrant Entertainment and Cultural Scene
Surrey has evolved from a quiet suburb into a dynamic, must-visit destination. With a rapidly growing sports tourism sector and a rich array of cultural festivals, the city is drawing more visitors than ever before. The live music and event scene in Surrey is thriving, with major festivals like FVDED and the Cloverdale Rodeo drawing tens of thousands of attendees each year. Surrey’s Canada Day celebration is now the largest of its kind in Western Canada, attracting over 90,000 visitors annually.
Sports Tourism: A Key Growth Driver
Surrey is home to some of the best recreational facilities in Metro Vancouver. The city boasts the highest number of public golf courses in the region, as well as several private courses catering to discerning golfers. Major sporting events, such as the Softball World Championships and the Premier International Soccer Cup, attract thousands of visitors each year, helping fill hotels and infuse the city with energy.
Innovation and Esports: The Future of Hospitality in Surrey
As a hub for innovation, Surrey is tapping into increasingly developing esports and AI/VR sectors. Metro Vancouver is home to the world’s second-largest cluster of VR-AR companies, and Surrey is capitalizing on this trend to enhance the guest experience, from hotel stays to experiential tourism. Events like the Pataka Esports Festival and the development of new esports facilities by prominent tech influencers like Linus Media highlight Surrey’s growing role in this high-tech, high-energy industry.
Cultural Diversity Driving Demand
Surrey’s diverse population—over 45% of residents are immigrants—means the city offers a rich, multicultural experience for visitors. Major events like the Vaisakhi Parade, which attracts over 500,000 attendees, highlight Surrey’s cultural vibrancy. With more than 170 languages spoken in the city, Surrey is not only a reflection of the world but a celebration of it. This cultural diversity makes Surrey an increasingly attractive destination for both regional and international travelers, driving year-round demand for hotel accommodations.
A Destination with Plenty to Offer: Waterfront Beauty, Affluence, and Proximity to the U.S. Border
South Surrey is an upscale neighborhood with scenic ocean views and prime access to the U.S. border. With rising demand for experiential tourism, this area is rapidly becoming a hotspot for investment. The local population’s affluence, combined with growing interest from American businesses, is driving investment in the region, making it an ideal location for hospitality development.
Civic Investment Answering the Call for More Hotel Stays
Surrey’s investment potential is further bolstered by ongoing development projects aimed at enhancing the city’s appeal. The city is developing two vibrant entertainment districts—one downtown, which will showcase the latest in hospitality, including a potential arena, and another in Cloverdale—designed to integrate hotels, dining, retail, and entertainment in line with its historic and western theme infrastructure. These developments are expected to drive unique and significant economic activity, attracting both business and leisure visitors.
Mixed-Use Developments: A Growing Trend
As demand for hotels rises, mixed-use developments are becoming a critical part of Surrey’s growth. Projects like the Civic Autograph Collection Hotel, a luxury development combining hotel accommodations with retail, dining, and university facilities, are shaping the future of the city. This development alone is projected to attract 37,000 to 40,000 visitors annually, demonstrating the growing potential for hotels in Surrey.
Innovation Boulevard Attracting Business Travel
As Surrey continues to invest in its infrastructure, key sectors such as healthcare, manufacturing, and agriculture are flourishing, attracting both regional and international businesses. A standout initiative, Innovation Boulevard, is a collaborative project between local universities, healthcare institutions, and the city government, positioning Surrey as a hub for innovation and emerging industries. This strategic development is driving growing demand for hotel accommodation, particularly in the mid- to upper-tier segments. The most notable growth is expected in City Centre, South Surrey (near the U.S. border), and Newton—areas that are primed for rapid development and increasing visitor demand.
Unmatched Location and Connectivity
Surrey’s location offers unrivalled connectivity. Just 45 minutes from downtown Vancouver and well-connected to three international airports, the city is easily accessible to visitors. It’s also served by SkyTrain and major highways, making travel throughout the region a breeze. Surrey is also positioning itself for future growth with the Surrey-Fraser SkyTrain extension, set to be completed in 2029, which will enhance regional connectivity and open up new opportunities for hotel development.
Sustainable Growth: Plenty of Land, Room to Grow
Unlike many cities constrained by space, Surrey has ample land for expansion. The city is committed to sustainable development, making it a prime location for eco-friendly hotels. Investors looking to capitalise on the growing demand for green travel solutions will find plenty of opportunities in Surrey.
Why Invest in Surrey Now?
Surrey is ready for the spotlight. With a dynamic economy, a strategic location, and a growing demand for both leisure and business travel, the city presents a unique opportunity for investors. The local government’s strong support for tourism and hospitality development, combined with a commitment to sustainable growth and innovation, makes Surrey an ideal place to invest.
The time to act is now. With strategic backing from organizations like Invest Surrey, Discover Surrey and the Surrey Hotel Association, investors have the resources and support they need to succeed.
Explore the untapped potential of Surrey and become part of its exciting transformation into a world-class destination. Reach out today to learn more!