The Anaheim/Santa Ana hotel market encompasses the entirety of Orange County, which supports a diverse base of industries, including technology, finance, manufacturing, education, and health care, among others. Orange County encompasses a variety of hotel submarkets, including Orange, Garden Grove, Anaheim (which features the Disney theme parks), Buena Park (home of Knott's Berry Farm), Irvine (home to University of California Irvine's campus and base for numerous corporate headquarters), and the affluent coastal communities of Dana Point, Huntington Beach, Laguna Beach, and Newport Beach. RevPAR increased from 2011 through 2019, supported by accelerated group business, the expansion at the Anaheim Convention Center (ACC), Disneyland’s 60th anniversary celebration in 2015/16, and expansions at the Disney theme parks, such as the "Star Wars: Galaxy's Edge" attraction that opened at Disneyland in 2019. Sustained positive trends in key performance indicators prompted a surge in hotel development, with most of the new supply concentrated in Anaheim, including the 466-room JW Marriott Anaheim Resort, 326-room Radisson Blu, and 618-room Westin Hotel Anaheim.

Following ten years of consecutive RevPAR growth from 2010 through 2019, travel and visitation slowed significantly in March 2020 as the effects of the COVID-19 pandemic stymied this market’s progress. Leisure travel and meeting/group business have historically been the two most prevalent demand segments within the Anaheim-Santa Ana market, but the various submarkets experienced different pandemic-related effects. While the affluent coastal communities benefited from a resumption of transient leisure travel, the inland submarkets were unable to take advantage of this pent-up demand due to the temporary closure of the amusement parks and the ACC that year. These factors contributed to a RevPAR decline of 55% in 2020. Market performance began to rebound in the third quarter of 2021, and the year-end 2021 data show significant improvements over 2020, with growth primarily driven by ADR. While lagging business travel and group demand should continue to affect the inland submarkets in the near term, demand within these two segments is anticipated to accelerate in the second half of 2022. Leisure demand continues to lead the recovery. Over the longer term, the solid popularity of the Disney theme parks, the draw of the local beaches, and the consistent base of corporate demand should support the market's recovery.

* 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.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

Anaheim - Santa Ana RevPAR Change

Anaheim - Santa Ana RevPAR

For more information, please contact:

	Luigi Major, MAI Managing Director Valuation, Market & Feasibility Consulting [email protected] +1 310 270-3240 (w)
	Kirsten Smiley Senior Vice President, Southern California Region Director Valuation, Market & Feasibility Consulting [email protected] +1 405 612-6255 (w)
	Emil Iskandar Senior Vice President Capital Markets [email protected] +1 720 231-3927 (m)