VANCOUVER — The neon lights of Vancouver's Granville Street strip, once a vibrant hub for nightlife and tourism, now flicker amid scenes of open drug use, mental health crises, and escalating violence, according to business owners and city officials. At a news conference on Thursday, the Hospitality Vancouver Association urged the provincial government to accelerate the closure of two remaining single-room occupancy hotels converted into social housing, citing a surge in crime and disorder that has made the entertainment district "untenable."
The calls for action come four months after a similar briefing at the Good Co. pub, where local operators first highlighted the deteriorating conditions. Dave Kershaw, owner of the Roxy Cabaret and Cabana Lounge on Granville Street, described a nightly routine that includes staff donning rubber gloves to clear human feces from entrances and politely asking groups smoking drugs to relocate so patrons can queue up. "What is happening is continual public disorder, open drug use, and mental health episodes that are frankly scary," Kershaw said from inside the Roxy Cabaret, emphasizing the changes since 2020 when British Columbia purchased and converted three SRO buildings, including one above his nightclub, into housing for nearly 300 people.
One of those buildings, The Luugat above Aura Nightclub near Davie Street, is already in the process of closing, with B.C. Housing initiating the shutdown earlier this month in preparation for the 2026 FIFA World Cup. The association, representing hospitality businesses in the area, demanded firm closure dates for the remaining two — St. Helen’s Hotel and Granville Villa, both located within a block of The Luugat — as part of broader measures to restore public safety in the Granville Street Entertainment District. Vancouver Mayor Ken Sim joined the chorus, calling on the province to establish new involuntary mental-health care beds within the city limits.
Kershaw detailed the physical toll on his business from the St. Helen’s Hotel directly above it, reporting nearly 31 fires and resulting water damage that has caused more than 100 floods inside his venue. Repeated false fire alarms, he added, have scared off customers and led to six-figure losses in sales. "The loss of sales due to this disruption, for me personally, is now in the six figures," Kershaw said. He advocated for relocating residents to supportive housing better suited to their needs, allowing business owners to "restore the entertainment district Vancouver deserves."
According to data collected by the Hospitality Vancouver Association from the Vancouver Police Department, crime and emergency calls in the area have skyrocketed since the SRO conversions. Police and fire services responded to roughly 6,641 calls at the three buildings between 2020 and 2025, marking an increase of more than 800 percent compared to the previous year. Spokesperson Laura Ballance provided a stark snapshot of recent incidents: "We give you a snapshot of the past 10 days on this street: a daytime murder in the middle of a busy work week, a major fire with a resulting flood, other smaller fires, and a sharp escalation in street disorder."
Vancouver Police Chief Const. Steve Rai underscored the disproportionate impact during the news conference, noting that the three social housing buildings have generated 18 times more police calls per capita than the rest of the city. "Residents in these buildings are 12 to 16 times more likely to experience violent crime," Rai said, describing the closure of The Luugat as "a step in the right direction." Despite these challenges, Rai acknowledged ongoing police efforts, including task forces and increased patrols, which the mayor credited with helping drive Vancouver’s overall violent crime rate to a 23-year low.
Yet Sim warned that such measures fall short without provincial intervention on the lingering issues. He referenced a promise made over a year ago by Premier David Eby, who announced the start of mandatory mental-health care during a visit to City Hall steps. "But one year later, what do we have?" Sim asked rhetorically. While some involuntary care beds have opened in other Metro Vancouver areas, such as Surrey, the mayor pointed out that "not a single new bed" has been added to serve Vancouver, the city with the province's most severe mental health cases.
The mayor framed the push as multifaceted: "This is about saving lives, this is about protecting businesses, this is about restoring confidence in our downtown core." City council, under Sim's leadership, has invested in enhanced policing initiatives, but officials argue that root causes tied to housing and mental health require higher-level action. The Granville strip, a key draw for tourists and locals alike, has seen its reputation tarnished by these developments, with business owners reporting a chilling effect on foot traffic and economic vitality.
Background on the SRO conversions traces back to 2020, when the province acquired the buildings amid a housing crisis exacerbated by the COVID-19 pandemic. The move aimed to provide immediate shelter for vulnerable populations, including those struggling with addiction and mental illness. However, critics in the hospitality sector contend that the locations — smack in the heart of an entertainment zone — were ill-suited, leading to spillover effects on surrounding businesses and public spaces.
Postmedia reached out to B.C.’s Housing Ministry for comment on the closure demands, but the ministry did not respond by publication deadline. In a separate statement, the B.C. Ministry of Health outlined existing resources, stating that the province currently maintains more than 2,000 mental-health beds capable of involuntary care. The ministry added that it is "working urgently to open additional beds in communities across the province" and conducting a review of the Mental Health Act to ensure optimal care for British Columbians.
The timing of these discussions is particularly acute with the 2026 FIFA World Cup on the horizon, an event expected to bring international visitors to Vancouver and spotlight the city's downtown. Closing The Luugat now is seen as a proactive measure to mitigate risks during the global tournament, but stakeholders worry that delays on the other buildings could undermine preparations. Hospitality leaders like those from the association emphasize that Granville's role as a tourism magnet is at stake, potentially affecting hotels, restaurants, and clubs that form the backbone of the local economy.
Beyond immediate closures, the broader conversation touches on systemic failures in addressing homelessness, addiction, and mental health. While police data highlights the localized spike in incidents, advocates for the unhoused have previously argued that such conversions represent a necessary, if imperfect, response to a lack of options elsewhere. The Hospitality Vancouver Association's summary of the situation reinforces the urgency, describing "near-constant disorder and violence" that has persisted since the buildings opened as social housing.
As Vancouver navigates these tensions, the path forward remains uncertain. Business owners continue to adapt — from enhanced cleaning protocols to security upgrades — but the consensus at Thursday's conference was clear: without swift provincial steps, the Granville strip's chaos could endure, jeopardizing its status as a premier destination. For now, the lights still come on each night, but the shadows of disorder loom large over what was once Vancouver's undisputed party central.
The implications extend to the city's overall image, especially as it positions itself for major events like the World Cup. Mayor Sim's administration has touted progress on crime reduction, yet the Granville-specific challenges underscore gaps in coordinated government response. With the NDP government facing pressure from multiple fronts, including housing policy critiques, the coming months will test commitments to both public safety and social support.