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Market Report

Indianapolis Hospitality Market Report

2024 Investment Forecast

Supply Wave Contributes to Declining Occupancy;
Investors Target Zones of Heavy Interstate Traffic

Landmark events continue to draw visitors amid rising inventory. Attendance at the Indy 500 has been on the ascent for the better part of a decade, notwithstanding a temporary COVID-era disruption. The race drew a 330,000-person strong crowd in 2023, the highest attendance noted since the event’s centennial in 2016. While the 2024 race, along with other events, should prove a major draw for tourism, the Indianapolis Motor Speedway Museum is in the midst of an $89 million renovation — the first to this portion of the facility in 40 years — that puts the museum out of commission until 2025. The interruption to some leisure demand drivers is ill-timed with an active construction pipeline of 2,700 rooms, representing a nationally-high 7.5 percent expansion to inventory. New construction will put particular pressure on downtown, where three hotel towers are slated for completion around Monument Circle before the end of 2024. A weighty pipeline will be the main contributory factor to an occupancy decline this year, the first time this metric has fallen on an annual basis since 2021.  
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