Downtown Hotel
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Downtown Hotel is a high-rise hotel development by Westcorp. This project is 33 storeys tall, located at 289 Queensway, Kelowna, BC. Downtown Hotel will have a total of 239 units.
The application was submitted on Mar 24, 2022 . City council approved the development permit on Sep 20, 2022 .
The development of a luxury hotel and convention center in downtown Kelowna, a project first proposed in 2004 and formally presented to the city council in 2014, has experienced numerous delays over the years. The waterfront site, previously occupied by the Willow Inn until its demolition in 2009, has remained vacant, with the project struggling to commence construction. The project, undertaken by Westcorp Inc., plans for a 33-story waterfront hotel featuring 174 hotel rooms, 65 residential units, a conference center, retail space on Water Street, and an 18th-floor restaurant, among other amenities. In 2020, the opening of a show suite was anticipated at 327 Bernard Avenue, alongside the launch of the sales.
Despite some advancements, the project has encountered obstacles, including delays due to flooding, speculation tax, COVID-19, and notably the last expiration of its development permit in September 2023. Over the years, permits were issued four times, but Westcorp noted before the last expiration that "due to construction pricing and interest rates, the hotel project remains unfeasible". Consequently, in October 2023, the sales center at 327 Bernard Avenue was offered for lease, indicating that the project was officially put on hold.
While the luxury hotel project faces delays, Westcorp Inc. is actively contributing to Kelowna's growth through another significant development, The Ledge on Lakeshore. This project is bringing 1,000 rental units to the community, currently under active construction. The Ledge on Lakeshore represents Westcorp's commitment to enhancing Kelowna's living spaces and addressing the community's housing needs.
This long-awaited hotel project represents a significant development for downtown Kelowna, promising to enhance the city's skyline and provide a mix of luxury accommodations and residential options. The project's completion is eagerly anticipated, with hopes that it will overcome its past delays and finally materialize, contributing to the city's growth and tourism appeal. Meanwhile, The Ledge on Lakeshore showcases the developer's ongoing efforts to invest in Kelowna's future.
Public discussion
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Okanagan Enthusiast
Observer, Feb 10, 2026
At least from what i know, In October 2025, the City of Kelowna purchased three key properties from Westcorp for $27.8 million. The city has hired Avington Financial Limited to find a major hotel brand and a new investment group to take over the project. I meant to say it will take 3-5 years from estimates for them to find a new contractor and start work ASAP as the city wants it done.
Unfortunately, I forgot to say the building height can't be over 25 stories now as per the new city’s Official Community Plan but I'm quite optimistic whoever gets it will be granted height variance. But i am still I'm expecting a total overhaul.
The Westcorp project as we knew it is dead officially which makes me a little sad as I loved the last proposal but I am also just as pleased to see what we get next as Kelowna is investing a lot for it to finally happen.
I am not sure about 3-5 years, if they don't have a developer or investors in this project?
Jack B
Urban Legend, Feb 10, 2026
I am not sure about 3-5 years, if they don't have a developer or investors in this project?
So with the whole city acquisition on this property from westcorp as I understand this project is now effectively dead as the city tries to find the new developer.
The good news is from what I hear is the height should be around the same as the westcorp proposals and will be built within the next 3-5 years.
It was a fun 20 year run for this project. Can’t wait to see what developer picks this up and the finished design they go for.
Okanagan Enthusiast
Observer, Feb 08, 2026
So with the whole city acquisition on this property from westcorp as I understand this project is now effectively dead as the city tries to find the new developer.
The good news is from what I hear is the height should be around the same as the westcorp proposals and will be built within the next 3-5 years.
It was a fun 20 year run for this project. Can’t wait to see what developer picks this up and the finished design they go for.
Jack B about One Varsity and Downtown Hotel
Urban Legend, Mar 07, 2024
The last 6 months' cancellations of the projects put Kelowna back at least 2,000 units. Most of the big developers in Kelowna adjusted their plans for the projects in the works.
Kelowna's Development Scene Hits a Slowdown: Unpacking the Current Challenges
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Jim Kelowna
Community Voice, Feb 11, 2024
I am wondering if this can be revived due to the ban on Airbnbs in Kelowna, as more hotel rooms would be in demand :)
Jack B
Urban Legend, Sep 21, 2023
Project is delayed again. "We are continuing to explore all options, but with no easing in construction pricing and interest rates, the hotel project remains unfeasible", Westcorp statement.
Westcorp hotel delayed again
Yet another setback for Westcorp, the company hoping to construct a 33-storey hotel and condominium complex on the site of the former Willow Inn Hotel near Kelowna’s downtown waterfront. After ...
Jack B
Urban Legend, Aug 13, 2023
I like this one, but it's very sad they aren't building it, received 3 approvals already, and is always postponed.
