United States -  New Orleans

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.

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:

Lauren Hock
Director - Gulf Coast Leader
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 805 431-0729 (w)