Los Angeles Hospitality Market Report

Region’s largest market tested in 2025. Los Angeles logged the second-highest occupancy among major West Coast markets last year; however, the metro’s hotel sector faces broad and localized hurdles in 2025 that will challenge that ranking. While evacuation orders and household displacements caused by the Palisades and Eaton fires lifted hotel occupancy in the first two months of this year, consequent rebuilding efforts will take precedence over other major projects. As such, officials have delayed the expansion of the Los Angeles Convention Center, which aimed to increase the venue’s size by 45 percent, aiding group-related hotel demand long term. Following several years of local strikes, Los Angeles’ hotel workforce and labor costs may be further impacted by future immigration policies. Meanwhile, international travel into the metro — historically accounting for one-third of all passenger volume at LAX — may be negatively impacted by geopolitical issues. Fortunately for most existing hotels, competition from new properties will be negligible this year, as completions and removals are expected to counteract each other.