New Orleans' reputation as a world-renowned vacation destination, a top-tier convention market, and a host of major sporting events draws millions of tourists to the market each year. This status is bolstered by attractions such as the French Quarter and National World War II Museum, as well as the annual festivals, including Mardi Gras and the New Orleans Jazz & Heritage Festival. Hurricane Katrina transformed the market in 2005; occupancy and ADR recovered briefly in 2008, before declining in 2009 during the Great Recession. The Deepwater Horizon oil spill in April 2010 represented a second transformative event; occupancy increased significantly that year and remained stable in 2011 as BP-funded tourism advertising spurred an increase in leisure travel. Sporting events in 2012 and 2013 resulted in significant ADR growth; continued increases in tourism and strong group demand resulted in RevPAR growth through the end of 2015. Low festival attendance caused a modest occupancy decline in 2016, while supply growth in the market caused a slight decline in occupancy in 2017. A stable convention schedule, media coverage of the city's tricentennial celebration, and the ramp-up of new hotels contributed to a positive trend in 2018. However, all metrics declined slightly in 2019 given the soft convention schedule and few major sporting events that year.
Prior to the onset of the COVID-19 pandemic, New Orleans hosted the Sugar Bowl and the College Football Playoff National Championship in January 2020, and carnival parades and Mardi Gras occurred in February 2020. A statewide stay-at-home order was issued in March 2020, and all major events for the rest of the year were canceled; non-essential businesses and attractions reopened at reduced capacity by June. Mardi Gras parades, Jazz Fest, and French Quarter Fest were canceled in 2021, although some cruises resumed in September. Business and leisure travel began a recovery in the summer of that year, and groups started to rebook for the fall; however, the pace of recovery was interrupted when the landfall of Hurricane Ida left the city without power for nearly two weeks in August. Occupancy recovery strengthened when Mardi Gras parades resumed in 2022; moreover, the Jazz Fest and Essence Festival recorded pre-pandemic attendance levels. Limited group demand led to the lowest occupancy level on record since 2009; however, the focus on high-rated leisure travel and the ramp-up of newer, more upscale hotels led to positive ADR gains in 2022. Year-to-date 2023 occupancy and ADR levels reflect stability, which is a positive indicator given the loss of the NCAA Final Four in April 2022.
* 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.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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ADR Change
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Market Demand Change
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Hotel Occupancy Increase/Decrease
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RevPAR Change
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0.0%
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0.0%
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0.0%
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Market Supply Growth
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Change In Value For Market:
Legend
Significant Value Increase:
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Greater than +10%
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Moderate Value Increase:
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Between +3% and +10%
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Stable Values:
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Between -3% and +3%
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Moderate Value Decline:
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Between -3% and -10%
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Significant Value Decline:
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More than -10%
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New Orleans RevPAR Change
New Orleans RevPAR
Year |
RevPAR |
2007 |
$67.33
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2008 |
$74.02
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2009 |
$65.35
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2010 |
$74.97
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2011 |
$78.26
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2012 |
$89.70
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2013 |
$95.53
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2014 |
$99.82
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2015 |
$103.44
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2016 |
$102.00
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2017 |
$101.57
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2018 |
$103.62
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2019 |
$105.18
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2020 |
$108.88
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2021 |
$
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2022 |
$
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2023 (f) |
$
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2024 (f) |
$
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2025 (f) |
$
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