United States -  Denver

The Colorado Convention Center (CCC), special event and sporting complexes, tourism, and major corporate office parks represent the primary sources of demand in the greater Denver market. Both occupancy and ADR grew from 2004 through 2007, as Denver gained popularity as a group destination and both commercial and leisure demand increased; however, an increase in supply and the onset of the Great Recession resulted in RevPAR declines in 2008 and 2009. As the economy began to recover and Denver secured its position as a major group destination, both occupancy and ADR increased from 2010 through 2015. However, a significant increase in supply resulted in occupancy declines from 2016 through 2018; moreover, during this time, rate growth began to dissipate as hotel operators discounted rates in an effort to curtail occupancy declines, resulting in a slight decrease in RevPAR in 2018 for the first time since 2009. Despite the increase in supply, both occupancy and ADR registered growth in 2019, with RevPAR surpassing the $100 mark for the first time in the historical period illustrated, largely attributed to significant commercial growth throughout Denver, an increase in meeting and group activity, and record tourism levels.

The COVID-19 pandemic significantly affected the Denver lodging market, as illustrated by the nearly 60% RevPAR decline in 2020 when compared to the 2019 level. Most notably, the Downtown Denver market experienced substantial losses in demand given the large presence of full-service hotels that rely heavily on meeting and group demand generated both in-house and by the CCC. In April 2020, the City of Denver temporarily closed the CCC and converted it into an overflow patient facility; however, the facility was never utilized for overflow medical needs. In May 2021, the CCC resumed operations, welcoming its first large event with over 20,000 attendees. As travel restrictions were rescinded in 2021, demand across all segments began to recover, with notable increases in occupancy and ADR in 2021; however, RevPAR levels remained well below the levels achieved from 2015 through 2019. Continued commercial development, coupled with the renovation and expansion of the CCC, should continue to drive demand growth during the recovery period, while Denver's popularity as a tourist destination is expected to continue to support the lodging industry.

* 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:

Katy Black, MAI
Senior Vice President
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 970 305-2229 (w)
Ryan Mark
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 303 881-4762 (w)