Skip to main content

Market Report

St. Louis Hospitality Market Report

2023 Investment Forecast

Gateway to the West Benefits from Interstate Travel;
Investors Seek Historically Lower Entry Costs

Occupancy continues upward climb, despite economic uncertainty. St. Louis will hold its first Major League Soccer (MLS) season this year, following the completion of a downtown stadium. Hosting an MLS team is expected to bring $8.4 million annually in fan spending, augmenting CBD lodging needs, in addition to other professional sports teams housed nearby. With comparatively fewer teams in the league, the metro’s local soccer franchise is anticipated to have a more regional draw, bringing an estimated 370,000 MLS fans to the city in its inaugural season. St. Louis is also home to several established Midwest attractions, like the Gateway Arch National Park, and is within a three-hour driving distance of the nearby Ozark National Scenic Riverways. Amid elevated airfare costs and mounting economic uncertainty, a trend toward shorter, local road trips within the region may become more prevalent. These factors enable hotel occupancy in 2023 to reach 60.6 percent, a yearlong average rate consistent with the 2000-2019 mean. This, paired with growth in ADR, signals continued recovery from pandemic setbacks.
MM Texture Background