Kalido Hospitality Group has converted three floors of vacant former Vancouver office space into serviced hotel apartments in one of the city's first office-to-residential conversions. 

The company says the decision to convert shaved years off the development and construction timeline compared to if it had started from scratch.

The conversion involved renovating three floors of former office space at 225 Smithe St., a mixed-use 27-storey building, into Smithe House. It offers 37 contactless apartment-hotel rooms outfitted with kitchens, laundry and family-oriented homes for extended stays.

Chris Evans, partner with Kalido Hospitality, said the suites are tailored for business visitors, and families, but also those who work in B.C.’s film and television industry. Vancouver-based Kalido is also a partner and manager of Red Mountain Lodging, which runs the individually owned properties at the Rossland, B.C. resort. 

Smithe House offers studios and units with one and two bedrooms, and apartments that include a bedroom with king bed and a second bedroom with double-sized bunk bed and sofa bed in the living area.

Quick pivot after building completed in 2020 

"It is obviously a significant amount of time and work and money to start from scratch for approvals in this city," Evans told RENX in an interview. 

He said there have been building-use conversions in other cities around the world, especially since the pandemic and the remote work revolution pushed up office vacancies in downtowns, including in Vancouver. “Big picture, we understood that there could be an opportunity."

Demand for accommodation in Vancouver from overnight visitors remains remarkably strong. 

Smithe House secured a long-term lease on the space with Kalido functioning as the hotel manager and partner with Boffo. 

Boffo developed the project and remains owner of the commercial component, including the space that Smithe House occupies. 

Smithe House operates on the third, fourth and fifth floors of the building, which is located between Hamilton and Cambie streets. The building has market condos on the levels above. The building was completed in 2020 but the office floors were never leased as job space. 

Conversion saved years in development time

Instead of taking four or more years to zone and construct a new hotel building, the project took about 18 months to complete from concept to opening, Evans said.

The biggest challenge for a conversion is typically meeting building code requirements, he said. But since this was a new build, there were no insurmountable issues pertaining to seismic requirements or other construction regulations that would have otherwise needed to be updated in an older building. 

That said, there were construction challenges. For instance, the builders had to install additional sinks and toilets to meet the needs of 37 units. That required drilling, or coring, 425 holes in the concrete structure, Evans said. 

While things like that are a "pain in the neck", they’re doable and just require some creativity and thinking by the construction team, he said, noting there are challenges in every renovation. 

Unique apartment-hotel experience is the goal 

"When we set out to design Smithe House, we wanted to be really intentional about the details,” said Javier Cepeda, a managing partner with Kalido. “From functional layouts and custom-made furniture to locally-made amenities and a personalized coffee program; the focus has been designing a stay experience that you can't find elsewhere in the city.”

Visitors now expect convenience and technology as much as they do thoughtful details and experiences that provide a sense of place, Cepeda said. “Smithe House invites guests to experience the city like a local but with the personalized details you'd expect from a boutique hotel."

The building includes full-sized apartments with a fully-equipped kitchen and washer and dryer that you'd find in a modern condo, he said. 

Some guests will stay for a few days, but many will stay for months. “We operate under a hotel license and are not subject to short-term rental restrictions,” Evans said.

Evans said they are aiming to match full-service hotel experiences with the convenience and amenities of an AirBnB or other home-share rentals. In 2024, the B.C. government restricted short-term rentals to principal residences and either a secondary suite or a laneway house in Vancouver and many other B.C. communities. 

That likely means demand for long-term accommodations with full kitchens and other amenities will increase. 

Cepeda called Smithe House a contactless property, or front desk-less experience.

"Everything is online," he said. But there is a small staff on site to help with any requirements or emergencies. 

Will we see more of this? 

Evans said changing market dynamics means we could see more of these conversions or "pivots". 

"Obviously, if you're sitting with an empty (building) whether it’s office space, or what have you, that is not working within a market, it's going to cause people to look at alternatives.”

He said we're seeing more appetite for office conversions, particularly in Calgary, New York and other U.S. cities facing a glut of vacant office space. Vancouver's office market is relatively stable, however, at about 11.2 per cent vacancy. Thus, widespread conversions are less likely to happen.