Officers were called to the Fairmont Pacific Rim hotel at about 2:30 a.m. when an armed man walked in, showed his handgun and then sat down and waited.
Vancouver police department spokesman Sgt. Randy Fincham says the man wasn't threatening anybody and negotiators spent the morning trying to determine what the man wanted.
The Vancouver Police Emergency Response Team took the distraught 28-year-old into custody just after noon.
Police say he was taken to hospital with minor injuries and could potentially face weapons-related charges.
Pedestrians and vehicles were diverted from around the hotel during the incident, while hotel guests were either evacuated or told to remain in their rooms.
The Fairmont Pacific Rim is a 377-room hotel and condominium tower overlooking Vancouver's Canada Place complex, which includes busy walkways, a major convention centre and seaplane terminal.