Los Angeles Hospitality Market Report

Metro leads major California markets in occupancy growth. Last year, Los Angeles’ hotel sector traversed further along its path to pre-pandemic levels of demand, with standout leisure and hospitality-related job creation reflecting an industry in recovery. The segment is well positioned to make further strides in 2024. Resolutions to the strikes by Hollywood talent and United Auto Workers union members that weighed on local business travel last year should pave the way for more such bookings in 2024. Tourism, meanwhile, nearly returned to a 2019 level last year with total visitations estimated at more than 49 million people, even without the large-scale return of international travelers. This year, overseas visitations, along with convention and event-related attendance, are expected to rise, factors that will support occupancy improvements across nearly all chain scales. Upscale and upper upscale hotels are anticipated to register the highest occupancy rates this year, with the luxury segment accounting for the largest gain in room nights booked. Together, these chain scales, which account for nearly 60 percent of the metro’s room inventory, will help support an overall rate of occupancy that exceeds the 2010-2019 average.