Los Angeles Hospitality Market Report

Visitor count approaches 2019 mark. Los Angeles’ hotel industry exhibited advancement over the 12-month stretch ended in June, with the metro accounting for the fifth-highest number of bookings among major U.S. markets. The sector, however, has yet to fully recover. Entering the second half, yearlong occupancy rates across hotel classes were at least 600 basis points below their recordings from the 12-month period ended in June 2019. Fortunately for the county, nearly 50 million individuals are expected to visit during 2023, nearly matching the 2019 level. A large swath of these tourists will arrive during the summer and early fall, pushing monthly occupancy rates into the mid- to high-70 percent range. Appropriately, lodging near Los Angeles International Airport and prominent beach cities is expected to be in highest demand, with hotels in these areas benefiting from a limited number of local, near-term room additions.