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 that time, ADR 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.
In 2020, the COVID-19 pandemic affected the Denver lodging market given the implementation of travel restrictions, the temporary closure of the CCC, and a significant decrease in both leisure and commercial demand; however, as travel restrictions were rescinded, demand across all segments began to recover, with notable increases in occupancy and ADR in 2021. While demand had substantially recovered by year-end 2022, lagging meeting/group demand and the impact of new supply resulted in occupancy levels below those achieved from 2013 to 2019; nevertheless, ADR reached a historical peak by year-end 2022, supported by the entrance of higher-rated new supply and an influx of pent-up leisure demand during the summer months. This recovery continued in the year-to-date 2023 period, further supported by the continued strength of the leisure segment, the return of corporate travel, and recovery within the meeting/group segment, with both occupancy and ADR illustrating growth when compared to the same period of 2022. The overall outlook remains positive given continued development activity, the ongoing expansion of the CCC, and Denver's popularity as a tourist destination, which all bode well for future growth within 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.