The government and education sectors and the construction industry have long been economic stalwarts in Phoenix, and economic diversification efforts have attracted major employers in the healthcare, technology, and finance fields over the past decade. The Phoenix lodging market benefits from annual major events, such as MLB Spring Training, the Barrett-Jackson Classic Car Auction, and the Waste Management Phoenix Open. Greater Phoenix tends to achieve occupancy levels in the high 60s during stable periods, with occupancy surpassing 70.0% in 2019. Following pandemic disruptions, RevPAR exceeded pre-pandemic levels in 2022. In 2023, ADR spiked during the Super Bowl, driving record-high RevPAR, though demand softened later in the year given the rising price sensitivity and seasonal shifts. While occupancy remained relatively stable throughout 2024, both ADR and RevPAR declined, attributed primarily to a post-Super Bowl rate correction. Despite the negative effects of the changes to U.S. federal policies on international and domestic markets during the first half of the year, the prevalence of larger meetings and events during the fall of 2025 should help boost market occupancy through the remainder of the year. Moreover, the continued growth of Greater Phoenix's population and the economic progression occurring throughout this region are positive factors.
* 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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|
|
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| ADR Change
|
|
|
|
| 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
|
Change In Value For Market:
Legend
| Significant Value Increase:
|
Greater than +10%
|
| Moderate Value Increase:
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Between +3% and +10%
|
| 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%
|
Phoenix RevPAR
| Year |
RevPAR |
| 2008 |
$73.77
|
| 2009 |
$55.27
|
| 2010 |
$55.94
|
| 2011 |
$60.18
|
| 2012 |
$61.12
|
| 2013 |
$64.87
|
| 2014 |
$71.52
|
| 2015 |
$74.77
|
| 2016 |
$82.67
|
| 2017 |
$85.89
|
| 2018 |
$87.61
|
| 2019 |
$84.97
|
| 2020 |
$86.25
|
| 2021 |
$
|
| 2022 |
$
|
| 2023 |
$
|
| 2024 |
$
|
| 2025 (f) |
$
|
| 2026 (f) |
$
|
| 2027 (f) |
$
|
For more information, please contact:
