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Market Report

Indianapolis Hospitality Market Report

2023 Investment Forecast

Indianapolis Awaits Returning Business Travel as Local
Investors Capitalize on Reduced Competition

Speedway holds as metrowide bright spot. Local hotels entered the year having gained back significant ground during 2022. The Indianapolis 500 drew its largest attendance figure in over two decades last May, helping ADR and RevPAR in the Airport-Speedway submarket exceed pre-pandemic highs. Although to a lesser degree this year, upward momentum is anticipated to continue, enabling the locale to register the highest annual occupancy rate among Indianapolis submarkets in 2023. At the metrowide level, hotel demand shifts marginally as an expected softening in households’ discretionary spending and slow-to-return business travel weighs on local fundamentals. This dynamic, combined with upcoming supply additions heavily concentrated in downtown, will translate to a moderate decline in occupancy this year. Nevertheless, the metro’s annual rate will remain above its 2000-2019 average by 130 basis points, aiding the overall outlook for the sector.
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