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 rate 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 outbreak, New Orleans hosted the 86th Allstate Sugar Bowl and the College Football Playoff National Championship in January 2020. Luckily, early carnival parades, the Rock 'n' Roll Marathon, and Mardi Gras occurred during February and early March. A statewide stay-at-home order was issued on March 23, and all major events for the rest of the year were canceled. The convention center was transitioned to a medical monitoring station from April through November of 2020. Non-essential businesses and attractions such as restaurants, bars, casinos, and museums were allowed to reopen at reduced capacity by June 2020; by June 2021, capacity limits only remained in place for large gatherings. Mardi Gras parades and the Jazz Fest and French Quarter Fest were canceled in 2021, but cruises from the city resumed in September 2021. Business and leisure travel began a recovery in the summer, and groups started to rebook for the fall; however, the pace of recovery was interrupted when Hurricane Ida left the city without power for nearly two weeks after it made landfall on August 25. Occupancy recovery should begin again as Mardi Gras parades resume in 2022; however, ADR recovery is anticipated to be protracted, with the most significant recovery expected during peak demand periods and special events, such as the NCAA Final Four in April 2022 and Super Bowl LIX in 2025.

* 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)