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Market Report

Northwest Hospitality Investment Forecast

2022 Outlook

Diverse Mix of Economic Drivers Spark Visitor and
Investor Demand Across Southwest

Population growth and recreational activities boost momentum. Annual occupancy eclipsed 60 percent in three of the Southwest’s five states last year, signaling a potential return of pre-pandemic hotel demand in these locales during 2022. Home to nearly 30 percent of the region’s hotel inventory, Nevada recorded renewed performance, fueled by heightened tourism in Las Vegas, which reported 9.5 million visitors during the fourth quarter of last year. In adjacent Utah, at least 11 million individuals visited the state’s five national parks last year. This record activity lifted occupancy above 70 percent in both June and July, pushing annual revenue metrics beyond 2019 marks. In Arizona, the addition of 123,000 jobs in Phoenix last year increased business travel to the metro, pushing the state's annual occupancy to 63 percent. Moving forward, demand drivers that lifted local hotel performance last year are expected to strengthen further, supporting the third highest occupancy rate among national hospitality regions during 2022.
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