Indianapolis Hospitality Market Report

Sporting events and interstate travel drive occupancy gains. Roughly 325,000 spectators attended this year’s Indy 500, the first hosted without capacity limits since the onset of the health crisis. This figure marks the event’s second-highest attendance in two decades, exemplifying demand tailwinds that pushed the metro’s average daily rate above pre-pandemic highs during the trailing year ended in May. Additional headline events, including the Verizon 200 and Pennzoil 150, should draw large crowds to the Indianapolis Motor Speedway this summer. Furthermore, the metro’s location at the heart of the Crossroads State is benefiting from the surge of interstate travel observed in the wake of the pandemic. While rising gas prices may create headwinds for hotel nights stemming from long-distance transit, average annual occupancy is still expected to reach within 2.1 percent of 2019 levels by the end of this year.