The L.A. Business Journal is reporting that Los Angeles tourism is already in recovery and rebound mode, with new data suggesting local hotels will outperform national hotel occupancy forecasts.
Per CBRE’s “Hotel Horizons” report, the U.S. hotel occupancy rate will average 43 percent during the first half of this year, exceeding 55 percent later in 2021. Locally, the hotel occupancy for Los Angeles is expected to meet or exceed 57 percent. By 2024, Los Angeles occupancy is expected to have recovered to 79 percent.
The L.A. Business Journal notes that local revenue is expected to grow nearly 17 percent to $70.46 billion. It’s welcome news for local government as well. Last year, in the midst of the pandemic, Reuters reported that California stood to lose more than $1 billion in hotel-related tax revenue.
While many properties were forced to shutter during the pandemic, including longtime L.A. staples like The Standard, CBRE forecasts a gain of just 0.9 percent in the national hotel supply for the year. The group predicts that supply growth will stay below 1 percent through 2023.
Read more from the L.A. Business Journal here.