New Study: LA Hotels Power City’s Economy, As New Council Policies Increase Operational Pressure
AHLA report shows LA hotels generate $12.5B annually but face rising costs and reduced investment, with 88% cutting staff due to city policies.
AHLA report shows LA hotels generate $12.5B annually but face rising costs and reduced investment, with 88% cutting staff due to city policies.
HVS reports March RevPAR up 3.9% nationally with luxury hotels leading gains, while hotel cap rates average 8.3% in Q4 as transactions remain below peak levels.
National occupancy held steady at 62.8% while ADR and RevPAR both declined 0.2%, with San Francisco leading gains and New Orleans posting steepest drops.
CoStar data shows U.S. hotels gained 3.1% occupancy and 6.2% RevPAR for the week, with New Orleans and Las Vegas leading growth.
First RevPAR growth month since March 2025, with Minneapolis leading gains due to federal agent activity and Miami boosted by CFP Championship Game.
CoStar forecasts the 2026 World Cup will drive 1.7% RevPAR growth in June-July, with host cities seeing 12.7% gains despite broader industry weakness.
RevPAR fell 6.3% to $118.26 in 2025, with luxury segments outperforming while economy hotels missed budget by 12.8%.
STR/Tourism Economics projects 0.6% RevPAR growth for 2026, driven by modest demand recovery and 2026 FIFA World Cup impact offsetting continued economic headwinds.
Overall U.S. performance shows occupancy down 4.3% and RevPAR down 4.0%, with Nashville seeing unusual gains due to Winter Storm Fern displacement bookings.
CoStar data shows all key metrics declined year-over-year, with Minneapolis leading gains and Washington D.C. seeing steepest drops.
AHLA projects $805 billion in guest spending and 30,000 new jobs in 2026, with GOPPAR still at 90% of pre-pandemic levels due to rising costs.
CoStar projects modest growth with RevPAR rising 1.4% in 2027, below the long-term average, driven by World Cup markets and higher-tier hotels.
CoStar data shows U.S. hotels achieved 1.6% RevPAR growth, with Miami leading ADR gains due to the College Football Championship while D.C. declined 32% against tough inauguration comparisons.
CoStar data shows 2025 marked the first year since 2020 with declining occupancy (-1.2%) and RevPAR (-0.3%), though ADR grew 0.9% nationally.
CoStar data shows Phoenix trailing NYC with 3,650 rooms, while Dallas rounds out the top three with 3,558 projected openings.
U.S. hotels posted 7.9% RevPAR growth during holiday week, with Miami leading at +26.4% while Tampa dropped 19.4%.
The 43-day shutdown caused 88,000 fewer trips daily as unpaid aviation workers created staffing shortages and national park closures suppressed demand.
Occupancy declined 2.8% marking nine straight months of year-over-year drops, with Tampa hit hardest due to Hurricane Milton displacement effects.
CoStar data shows U.S. hotels faced occupancy decline of 1.6% while ADR rose modestly 0.4%, with New Orleans hit hardest by RevPAR drop of 29.9%.
Hotels expect ADR to rise 37% and RevPAR to jump 47% in February 2026, though occupancy will trail 2016 levels due to larger supply.