Los Angeles Hospitality Market Report

Sparse new competition expected. Average occupancy in Los Angeles in the first half of 2024 trailed the same period from 2023 by 90 basis points. While this can be interpreted in different ways, the performance of the metro’s largest submarket by stock, the CBD, is encouraging. Here, occupancy rose 80 basis points year-over-year during the first half of 2024. With just 100 rooms slated for delivery across Greater Downtown Los Angeles this year, area hotels will encounter minimal new competition over the near term. The same can be said for Hollywood-Beverly Hills and Los Angeles Airport, the two other largest submarkets. Across these areas, some hotels may instead witness a decrease in competition. The metro’s room inventory is slated to decline this year, as some hotels are removed from market for conversion or redevelopment. While this could aid booking volumes at remaining hotels, overall occupancy in 2024 will notably trail 2019, with a full recovery hinging on foreign tourism.