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.
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 |
| 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
|
| 2014 |
$99.82
|
| 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 |
$
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| 2024 (f) |
$
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| 2025 (f) |
$
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| 2026 (f) |
$
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