Portland Hospitality Market Report

CBD’s facelift sustains occupancy momentum. Official and nonprofit sector stakeholders are putting in efforts to beautify Downtown Portland’s public spaces, after several years of disrepair impacted local tourism. The re-imagination of the Darcelle XV Plaza — previously an eyesore that is slated for conversion into a community and events space — as well as the refurbishment of several landmarks, such as the Thompson Elk, will gradually help the CBD become a more attractive place to visit. Improvements are already materializing, as the core saw the highest jump in occupancy among any West Coast submarket during 2023. Upward momentum is expected to continue, with the CBD anticipated to host the most bookings across the metro this year for the first time since 2019. Elsewhere, demand in the Airport-Vancouver area is normalizing after leading the market for the last four years; however, the submarket still stands to benefit from growing activity at Portland International Airport. The volume of passengers here increased 21 percent year-over-year in 2023, moving within 18 percent of 2019 levels. This continuing recovery in 2024 will shore up local occupancy, as business travelers and those waiting for layovers stay at nearby hotels.