Denver Hospitality Market Report

Price pressures weigh most on value stays. Stretched household budgets are leading to a decline in leisure travel to Colorado. Locally, lower-service level hotels have been hit hardest by this trend, led by economy-class occupancy falling by 170 basis points over the last 12 months ended in June. This dynamic has been most pronounced in the Airport submarket. The combination of slowdowns in both leisure travel and transient business bookings contributed to a 230-basis-point drop in the submarket’s overall occupancy over the past year. In contrast, stable group meeting demand helped occupancy remain unchanged for full-service hotels, benefiting business hubs such as Downtown Denver and the Denver Tech Center. Looking ahead, softening inflation and lower interest rates may serve as tailwinds for guest arrivals, while a constrained construction pipeline beyond this year will lessen competition for existing hotels.