Portland Hospitality Market Report
2023 Investment Forecast
Downtown Improves While More Visitors Explore the Westside,
Shoring up Occupancy and Investor Interest
Hotel demand showing little sign of retreat. Portland’s hospitality sector is steadily improving, despite a local housing crisis that has made certain neighborhoods less desirable to stay. Hotel demand increased by 600,000 room nights last year in the CBD — an area that accounts for over 40 percent of the metro’s total inventory — driven by a notable rise in tourist-related foot traffic. This dynamic helped fuel a near 1,200-basis-point rise in local occupancy, drawing the area closer to pre-pandemic levels in this metric. Nevertheless, the core’s recovery may be impeded by activity in outer locales, which are accounting for a greater share of hotel demand than in prior years. Occupancy in Beaverton and areas along Sunset Highway West rose to nearly 72 percent during 2022, more than 120 basis points higher than the 2019 recording. Although local operators will face elevated competition in 2023 from the delivery of more than 300 new rooms here, hotels in the area will still register above-average demand. The Quail Valley and Pumpkin Ridge golf courses, the hosts of LIV Golf Portland last year, should continue to draw outside visitors to the area for weekend stays. Despite these positives, Portland’s hospitality sector will not fully recover this year, as the annual occupancy rate will trail the long-term mean by 300 basis points.