United States -  Los Angeles - Long Beach

Los Angeles is a major global center for business and trade, entertainment, media, fashion, science, and education. The market includes a variety of dynamic submarkets, ranging from luxury destinations in Santa Monica, West Hollywood, and Beverly Hills to the coastal communities of Malibu, Venice Beach, and Manhattan Beach, as well as industrial areas to the south in Long Beach and to the east in the San Gabriel Valley. Over the last two decades, Los Angeles tended to enjoy occupancy levels in the upper-70.0% range, except when the nation was experiencing an economic downturn. In 2023, occupancy remained in the lower 70s, as factors such as the slow return of corporate travel, strikes in the entertainment industry, and the lower level of international travel somewhat limited occupancy growth. ADR, on the other hand, well surpassed the pre-pandemic levels. The gradual return of international travelers and the developments around LAX in anticipation of the 2028 Olympics are bolstering the fundamentals of the Los Angeles market. The outlook for 2024 is favorable. 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
Managing Director, Southern California Region Director
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 405 612-6255 (w)