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. All major events were canceled in March 2020 through much of 2021; Hurricane Ida also left the city without power for nearly two weeks in August 2021. Occupancy recovery strengthened when Mardi Gras parades resumed in 2022, and the Jazz Fest and Essence Festival recorded pre-pandemic attendance levels. Over the last two decades, market occupancy generally climbed to nearly 70.0% prior to the pandemic-related years. In 2023, occupancy moderated and remained just under the 60.0% mark, well below what would be considered normal for this market; hotels that were repositioned or opened the past five years are still ramping up. ADR also moderated somewhat in 2023, and seasonal ADR normalized after the 2022 NCAA tournament was held in the city. The outlook for 2024 is more optimistic, as a stronger cycle of major convention years will begin, and more major events should boost market occupancy and ADR during peak periods.

* 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)