Los Angeles Hospitality Market Report
2023 Investment Forecast
West Coast’s Largest Delivery Slate Gauges Pent-Up Demand;
Window of Opportunity May Exist for Buyers
Full recovery hinges on international component. Los Angeles’ hospitality industry makes additional strides this year; however, economic headwinds, a sizable local delivery slate and uncertainty surrounding international travel may temper sector momentum. Over the course of 2023, more than 2,200 rooms will be completed metrowide, the third largest annual total this century. The near-term influx of upper midscale, independent and upscale properties will hold yearlong occupancy well-below the pre-pandemic norm, despite the overall number of bookings nearly matching the 2016-2019 average. Cognizant of the metro’s international appeal, local organizations and airlines are taking steps to ensure foreign tourism realigns with the pre-health crisis level by 2024. Through March of this year, Los Angeles Tourism is running a large-scale media campaign in Australia, a nation that contributed 421,000 visitors to the market in 2019, the largest overseas source behind China. Additionally, Delta Airlines will add service from New Zealand to Los Angeles in fall.