Los Angeles Hospitality Market Report

Soccer matches support moderate occupancy gain. Tourist arrivals to Los Angeles declined last summer, driven by an 8 percent drop in international visitors during June-August. Additionally, passenger traffic at LAX fell nearly 4 percent for the year, contributing to the first year-over-year decline in average occupancy since 2018, excluding the pandemic. As such, the metro’s role in this year’s FIFA World Cup is a welcome boon for its hotel sector, with SoFi Stadium hosting eight matches in June and July, including the U.S. Men’s National Team opening game. As of last December, hotels near the stadium were reportedly 60 to 70 percent booked for both months, with significant nightly rate increases likely to inflate these properties’ ADR figures for the year. This encouraging booking indicates overall occupancy for both months should exceed 80 percent — during 2015-2019, average occupancy for these months was 84.4 percent. While hotels in South Bay stand to benefit most, demand will extend to Downtown Los Angeles and Westside cities. Still, recent declines in office-using employment and local film production will weigh on business travel to the metro, preventing a sizable increase in annual occupancy from occurring this year.