September 19, 2019
Los Angeles area hotels continue to benefit from high demand from leisure and business travelers alike, according to CBRE Hotels Research’s September 2019 Hotel Horizons report. That strong performance comes amid a slight downward adjustment in CBRE’s RevPAR forecasts in 2019 and 2020.
CBRE Hotels Advisory’s Brandon Feighner says, “The Los Angeles hotel market continues to operate at a very high level, and given the expanding demand base, has been more than able to absorb the greater-than-average number of new hotel openings – a trend that is forecast to continue in coming years.”
Average daily rates at hotels across all categories in Greater L.A. are expected to climb 1.5% to $182.91 for the full year 2019, add an additional 1.8% next year to $186.22 and increase 1.3% to $188.65 in 2021. Occupancy this year is expected to climb 0.4 percentage points in 2019 to 79.8%. Occupancy is expected to stay close to this level with 78.9% and 78.6% in 2020 and 2021, respectively.
Feighner added, “While we are forecasting a slowdown in RevPAR growth in the next couple of years, Los Angeles will continue to be among the premier markets in the United States for hotel investment and development, given its expanding and diversifying corporate base, numerous leisure attractions, and ever-improving airlift.”
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