Los Angeles is a major global center for business and trade, entertainment, media, fashion, science, and education. The market includes a variety of dynamic submarkets, ranging from luxury destinations in Santa Monica, West Hollywood, and Beverly Hills to the coastal communities of Malibu, Venice Beach, and Manhattan Beach, as well as industrial areas to the south in Long Beach and to the east in the San Gabriel Valley. Over the last two decades, Los Angeles tended to enjoy occupancy levels in the upper-70.0% range, except when the nation was experiencing an economic downturn. In 2023, occupancy remained in the lower 70s, as factors such as the slow return of corporate travel, strikes in the entertainment industry, and the lower level of international travel somewhat limited occupancy growth. ADR, on the other hand, well surpassed the pre-pandemic levels. The gradual return of international travelers and the developments around LAX in anticipation of the 2028 Olympics are bolstering the fundamentals of the Los Angeles market. The outlook for 2024 is favorable. Over the long term, the popularity of this market with leisure and business travelers, its limited supply increases, and the diversity and strength of the local economy should support continued growth in the lodging sector.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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| ADR Change
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| Market Demand Change
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| Hotel Occupancy Increase/Decrease
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| RevPAR Change
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0.0%
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
Legend
| Significant Value Increase:
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Greater than +10%
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| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Los Angeles - Long Beach RevPAR Change
Los Angeles - Long Beach RevPAR
| Year |
RevPAR |
| 2008 |
$91.09
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| 2009 |
$73.35
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| 2010 |
$78.94
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| 2011 |
$88.43
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| 2012 |
$98.29
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| 2013 |
$105.12
|
| 2014 |
$116.00
|
| 2015 |
$126.08
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| 2016 |
$139.60
|
| 2017 |
$140.86
|
| 2018 |
$145.73
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| 2019 |
$150.80
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| 2020 |
$156.83
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| 2021 |
$
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| 2022 |
$
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| 2023 |
$
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| 2024 (f) |
$
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| 2025 (f) |
$
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| 2026 (f) |
$
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