Salt Lake City Hospitality Market Report

Limited supply increase mitigates falling metrics affected by modest labor growth. Following an impressive stretch, Salt Lake City will report declining occupancy this year as certain demand drivers cool. While the market was one of just six major metros to note sub-3 percent unemployment in 2023, supporting non-local recruitment, continuing tech sector headwinds will likely weigh on hiring-related hotel stays in the market this year. Contrasting this business travel hurdle, however, is positive momentum within the leisure segment. Hotel room demand is continuing to climb in South Salt Lake City, near several different ski areas. National snowfall in the 2023-2024 ski season so far has favored Utah destinations, a positive for area hotels to start the year. A record number of people also visited Utah state parks in 2023, with four of the ten most visited located in Davis and Wasatch counties. The supply side offers another positive note; just 340 keys are slated for delivery in 2024, the lowest annual total noted since 2020. These additions are spread out along the West Valley, which should limit their impact on existing hotels.