Propelled by the driving force of the University of Alabama and the automotive manufacturing industry, Tuscaloosa’s lodging market quickly rebounded post-pandemic and trended upward through 2023. The outlook for area hotels remains positive, and interest in new hotel development is thriving in the greater market.
In 2023, Seattle was a beacon of renewed strength in the Pacific Northwest given its vibrant concert and sports event calendar, record-breaking cruise season, and $1.9-billion expansion of the Seattle Convention Center. As a result of these factors, Seattle was one of the nation’s best-performing hotel markets during the summer.
Baltimore has struggled to recover from the impact of the COVID-19 pandemic and the negative perception of the downtown neighborhoods. However, ongoing or planned development and revitalization efforts bode well for the future of the city.
All five New York City boroughs were heavily affected by the COVID-19 pandemic. The strength of Brooklyn as a commercial center is partly attributed to the downtown core, distinct neighborhoods, public green spaces, and ease of access to/from Manhattan. These factors, combined with the availability of developable land, have continued to boost the Brooklyn market, especially in the post-pandemic period.
In 2023, Portland's hotel demand faced setbacks from public safety concerns and absorption of new hotel supply. However, initiatives like the Hotel Security District and a government task force addressing homelessness signaled change. The opening of the Ritz-Carlton Hotel & Residences and several upcoming events contribute to a cautiously optimistic 2024 outlook.
Over the past decade, Sacramento has seen strong economic growth, driven by investment in the Downtown and Natomas submarkets. Fueled by rising costs in the San Francisco Bay Area, businesses and individuals have migrated inland toward the more cost-efficient Sacramento Valley. With several major commercial developments in the works, Sacramento should experience sustained growth in the near term.
As 2023 ends, regional HVS leaders across the globe take a look back at how the global hotel industry fared this year. Overall, operating metrics shined brightly, with revenue growth achieved in most global markets, while investment activity cooled. The investment market is expected to improve in 2024.
With the pandemic generally in the rearview for the market, Downtown Memphis hotels have yet to recover to occupancy levels realized in 2019. This is attributed to a slow recovery in both corporate and group demand, coupled with significant growth in new supply. However, rising average rates at new hotels have become the saving grace for market RevPAR levels.
Central Oregon, located east of the Cascade Mountains, is a popular drive-to destination comprising twelve cities. It attracts millions of visitors annually with its natural beauty and diverse landscape. However, the COVID-19 pandemic has greatly affected the travel industry, causing notable changes in hotels, businesses, and attractions across Central Oregon.
Phoenix has exploded in growth over the last decade, developing a diverse and welcoming economy that has allowed the city and surrounding communities to outperform other top-25 markets.