Cleveland Hospitality Market Report
2023 Investment Forecast
Strong Hotel Demand from Regional Travel and Low Entry
Costs Turn Investor Interest to Cleveland
Demand rebound enables occupancy to reach a multi-decade high. Among major Ohio markets, Cleveland boasts the highest occupancy and ADR in 2023. Only one other major Midwest metro notes better performance in these metrics. Occupancy this year will elevate above the 2019 high as Cleveland hosts a variety of sporting events, aiding regional tourism. The Greater Cleveland Sports Commission estimates that sporting competitions outside of regular athletic seasons will bring $17.9 million in economic impact, some of which will come from overnight stays. Regional visitors coming for such events — typically staying for less than a week — will often choose limited service hotels. The segment is likely to note the greatest rise in occupancy among service levels, as travel from within Ohio and neighboring states continues to grow. Plans underway to redevelop the lakefront Port of Cleveland into a nature-integrated, mixed-use park may contribute higher volumes of regional tourism and allow strong fundamentals to persist long term in the locale.