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Market Report

Gulf Region Hospitality Investment Forecast

2022 Outlook

Louisiana Tourism and Colleges Facilitate Recent Gains;
Upscale Trading Re-Emerges

Returning leisure activities drive complete occupancy recovery. Hotel demand rebounded notably during the second half of last year, as average monthly occupancy over the six-month period reached 60 percent, a rate that exceeded the same span during 2019 by 250 basis points. The return of students to college campuses and full capacity at SEC football games were primary drivers of recent demand growth, as was an increase in Louisiana tourism. Together these factors elevated both regional ADR and RevPAR well beyond prior second-half recordings, an encouraging sign for the region prior to the return of Mardi Gras and a collection of major sporting events this year. Additionally beneficial to the area's hospitality recovery, the region's construction pipeline is relatively sparse. Inventories in both Louisiana and Mississippi are slated to increase by less than 1 percent this year, limiting supply-side competition for existing properties.
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