United States -  Dallas

Dallas/Fort Worth International Airport (DFW), Love Field Airport, Kay Bailey Hutchison Convention Center, and local employers and headquarters, particularly within the telecommunications, technology, insurance, financial services, and healthcare fields, represent the primary sources of demand in the greater Dallas market. Occupancy surpassed the 60.0% mark from 2005 through 2007; during that same period, ADR improved above the rate of inflation year-over-year. The effects of the Great Recession caused occupancy to decline in 2008 and 2009. Occupancy rebounded in 2010 and continued to increase through 2016, reaching a new peak above 71.0% that year. However, data for 2017 through 2019 illustrate contractions in occupancy, attributed primarily to the effects of new supply. During that period, lodging demand was supported by strengthening corporate activity, particularly in the northern suburbs, as well as revitalization efforts and growth in the high-density residential, office, hotel, and retail/restaurant sectors within the downtown area. The pace of ADR growth slowed in 2017, as increased supply prompted a more competitive environment. Similar to the national average, data for 2019 reflect a minor dip in RevPAR, as the pipeline of new supply weakened overall market occupancy and prompted a notable drop in ADR growth.

The COVID-19 pandemic significantly affected the Dallas lodging market, as illustrated by the nearly 50.0% RevPAR decline in 2020. Weakened hotel demand yielded an annual occupancy of 43.5% for 2020, while ADR plummeted to just over $85. Occupancy and ADR rebounded considerably in 2021, largely supported by the removal of COVID-related governmental restrictions; moreover, a severe winter storm in February 2021 spurred an uptick in hotel demand. The market’s RevPAR for 2022 exceeded prior peak levels, primarily fueled by boosted levels of high-rated leisure demand, as well as an increase in upper-upscale and luxury full-service inventory in the greater Dallas area, which positively influenced ADR. Meeting/group demand continued to rebound in 2022, and corporate travel accelerated but continued to lag peak levels. Fueled by elevated hotel supply and the continued upward momentum in meeting/group and corporate demand, year-to-date 2023 data indicate a continued increase in both occupancy and ADR, with RevPAR peaking at over $85. The outlook for Dallas is positive, driven by a diverse base of employers and continued corporate relocations, as well as numerous projects proposed or under development, including a new, $2-billion, 2.5-million-square-foot convention center anticipated to open in 2029.

* 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:

Kathleen Donahue
Senior Managing Director
Regional Practice Leader, Consulting & Valuation
[email protected]
  • +1 972 890-3548 (w)