United States -  Los Angeles - Long Beach

Los Angeles is a major global center for business, entertainment, international trade, media, fashion, science, technology, and education. The Los Angeles hotel market (defined as Los Angeles County) is one of the largest in the United States and includes a variety of dynamic hotel submarkets, ranging from world-famous luxury destinations in Santa Monica, West Hollywood, and Beverly Hills to the coastal communities of Malibu, Venice Beach, Manhattan Beach, and Hermosa Beach, as well as smaller and more industrial areas to the south in Long Beach and to the east in the San Gabriel Valley. Following declines in 2009, concurrent with the local and national economic downturns, market-wide RevPAR registered steady year-over-year growth from 2010 through 2019, resulting in occupancy levels approaching 80.0% in 2019. The Los Angeles market realized the quickest occupancy recovery among all major Southern California markets after the Great Recession. Growth continued in the last decade despite steady increases in supply, particularly in the vibrant submarkets of Downtown L.A., Hollywood, and West Hollywood.

Travel and visitation slowed significantly in 2020 as a result of COVID-19; thus, the market ended the year with an occupancy level of 48.9% and an ADR of $138.95, reflecting a RevPAR decrease of 52.6% when compared to 2019. In Los Angeles, many small and large businesses, as well as the entertainment industry, were significantly affected by strict government restrictions implemented to reduce the spread of COVID-19. Group events at area hotels and at the Los Angeles Convention Center were canceled through mid-year 2021; however, re-bookings started in the fall of 2021. By year-end 2021, occupancy and ADR rebounded considerably, showing significant improvement over 2020. The rebound accelerated in 2022, and while occupancy fell short of 2019 levels, ADR well exceeded prior peaks. As a result, the market's RevPAR for year-end 2022 was nearly equal to that of 2019, illustrating the resiliency of the Los Angeles market. The return of in-person "awards season" galas and events, as well as the 2022 Super Bowl, supported the recovery of demand in 2022. The developments around LAX in anticipation of the 2028 Olympics bolster the fundamentals of the Los Angeles market. Over the long term, the popularity of this market with leisure and business travelers, its limited supply increases, and the diversity and strength of the local economy should support continued growth in the lodging sector.

* 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
Senior Vice President, Southern California Region Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 405 612-6255 (w)