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Originally Posted by Vin
That's very lousy reasoning not to protect a heritage structure, which didn't look modest at all. Also, it wasn't like Vancouver had many heritage buildings to begin with, and so letting it come down was indeed an atrocity. Maybe that's why Vancouver has become a provincial town it is today, because nobody ever thinks big, and whatever little we have, we just can't wait to get rid of them. Question for you: why build the third hotel when there is so little demand for room space?
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The second Hotel Vancouver wasn't a heritage building when it was demolished. It wasn't even very old. The part you are referencing was built by the Canadian Pacific Railway; opened in 1916, and closed in 1939. It was demolished in 1949.
The third Hotel Vancouver was started in 1928 by the Canadian Northern Railway, and was part of the deal that allowed that railway to build a station on the filled-in False Creek. It didn't open until 1939. In between there was a huge recession. By the time it was completed neither hotel was really viable - especially once the war started. CN and CP jointly ran the newer hotel, (the one standing today), and apart from using the slightly older building as a barracks, and to house homeless returning soldiers from the war, no further use was found for it.
Officedweller might be right about a restrictive covenant to prevent hotel use, although I've not seen that stated anywhere but on SSP. A 1948 newspaper article seems to contradict that statement: the site was bought by T Eaton and Co to build a modern departmental store. Pressed by the Board of Trade of the day to resell it, or remodel it as a hotel again, Eaton's said "no one is interested in its purchase". It seems unlikely that any hotel operator would have wanted to compete with the newer Hotel Vancouver and the equally new Hotel Georgia across the street, opened in 1932. Eaton's then took 20 years to get round to opening their new store - designed by Cesar Pelli at Victor Gruen & Co, considered at the time the best retail architects for malls in North America.