United States -  Anaheim - Santa Ana

The Anaheim/Santa Ana hotel market spans the entirety of Orange County, which supports a diverse base of industries and sectors, including technology, finance, manufacturing, education, and healthcare, 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), 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 and 618-room Westin Anaheim Resort.

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, demand in the inland submarkets was suppressed due to the temporary closure of the amusement parks and the ACC that year. Market performance began to rebound in 2021 but remained well below historical levels. Data for 2022 indicate continued recovery, primarily driven by ADR growth; as a result, RevPAR surpassed the level achieved in 2019. With Disneyland Resort returning to full capacity by mid-year 2022, the overall market began to benefit from considerable pent-up leisure demand. However, attendance of citywide conventions remains below pre-pandemic levels and is not expected to fully recover until 2024/25. Nonetheless, the solid popularity of the Disney theme parks, the draw of the local beaches, and the gradual return of group and corporate demand should support the market's recovery in the long term.

* 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.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Kirsten Smiley, MAI
Managing Director, Southern California Region Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 405 612-6255 (w)