Expect L.A. Hotel RevPAR to Climb 3.2% in 2019

Bruce Baltin

Los Angeles hotels are in for another strong year of occupancy gains and revPAR growth. According to research from CBRE, revPAR for hotels in the Greater L.A. market will increase 3.2% to $148 average daily rate this year. Higher-end hotels will likely see a 1.5% gain in revPAR, while lower end hotels will see a 2.8% increase. This year, hotel occupancy is also expected to increase to 81%, up 1% from 2018. These projections outpace the national forecast, which sets revPAR growth at 2.5% in 2019.

“A combination of leisure demand, international demand and commercial demand is driving hotel occupancy in Los Angeles,” Bruce Baltin, managing director at CBRE, tells GlobeSt.com. “A lot of the leisure demand is centered around Downtown Los Angeles, and that market is a strong driver of demand fort Greater L.A.—much more than it used to be. The commercial demand is coming from Silicon Beach and the tech bend.”