Union Condemns Council Vote Granting New Hotel Developer Incentive Amid Housing Crisis
Vancouver, BC — UNITE HERE Local 40 is condemning Vancouver City Council’s decision at the public hearing on June 2 to approve a new development incentive for downtown hotels as part of a package of zoning changes tied to provincial housing legislation.
While the amendments were presented as necessary to comply with Bill 16 mandates related to inclusionary zoning and housing-related density bonuses, Council also approved a separate measure allowing downtown hotel projects to exclude up to 20 percent of their floor area for private, commercial hotel amenities and event spaces from density bonus calculations.
Density bonusing is intended to secure public benefits such as affordable housing, childcare, parks, and other community amenities when developers receive permission to build larger projects. Excluding floor area from those requirements increases development value while reducing what developers would otherwise contribute toward public benefits.
According to city staff, the hotel measure stems from a separate Council direction to explore incentives for hotel development and was requested by the hospitality industry to support larger event, conference, and guest amenity spaces.
Councillor Sean Orr moved to sever the hotel incentive from the Bill 16 compliance package. The motion failed, and the exemption was approved as part of the broader by-law changes. Councillors Pete Fry, Rebecca Bligh, and Mayor Ken Sim were absent.
“Council bundled a new hotel development incentive into a housing-related amendment package and pushed it through at the same time Vancouver is facing one of the worst housing affordability crises in the country,” said Zailda Chan, President of UNITE HERE Local 40. “If development incentives are offered, they should be tied to affordable housing or other community benefits.”
The union also rejected suggestions made by certain Councilors during debate that hospitality workers need to be educated about the relationship between hotels and affordable housing.
“Our members understand the housing crisis better than most. They live it every day,” said Chan. “Workers don’t need a lecture. What Vancouver needs is more affordable housing. The question Council never answered is why a housing bill became the vehicle for another giveaway to hotel developers.”
UNITE HERE Local 40 urged Council to revisit the hotel exemption through a separate public process and provide clear evidence that the incentive is necessary, justified, and delivers a meaningful public benefit.
Contact: Michelle Travis, [email protected], 778-960-9785