Los Angeles’s hospitality market slightly softened through Q3, reflecting typical seasonal moderation following a strong first half of the year. Occupancy lowered to 70.3%, down 2.6% from the previous quarter. ADR steadied at $194.12 and RevPAR settled at $136.51, supported by resilient leisure demand and consistent international travel. Performance trends indicated a balanced environment, as weekend and event-driven tourism helps offset slower corporate and group segments amid broader economic caution. Despite modest quarterly easing, Los Angeles continues to outperform national averages buoyed by its global tourism base and anticipation of upcoming large-scale events, including the 2026 FIFA World Cup, 2027 Super Bowl, and 2028 Summer Olympics, which are expected to strengthen market fundamentals and drive ADR growth over the medium term.
Key Findings
- Los Angeles’ remains one of the nation’s most visited markets, supported by sustained international travel through Los Angeles International Airport and more than 50 million annual visitors.
- Private capital led $61.5 million in Q3 hotel transactions, targeting well-located select-service, lifestyle, and coastal infill assets across Los Angeles.
- Over 80% of Los Angeles’s active hotel development is concentrated in Upper Midscale and Upscale projects across Downtown, Burbank, and East LA.
Los Angeles Airport Travel
Los Angeles International Airport (LAX) continues to solidify its position as the second busiest airport in the nation, handling an impressive 33.6 million domestic and 16 million international passengers in the past year. With a 4.3% year-over-year increase in passenger traffic, LAX demonstrates strong growth and resilience in the travel sector. Its continued recognition through travel accolades highlights the airport’s commitment to providing world-class service and a seamless travel experience for millions of travelers in 2025.
Occupancy, ADR, and RevPAR
Source: CoStar Group, Inc.
Los Angeles Construction
Development activity across Los Angeles remains steady, with roughly 2,100 rooms under construction across 17 projects. Investor and developer confidence persists despite elevated financing costs, as builders focus on Upper Midscale and Upscale segments concentrated in Downtown LA, Hollywood, and the LAX corridor. Downtown LA, Hollywood, Burbank/Glendale, and the LAX corridor anchor the city’s active pipeline, supported by ongoing revitalization efforts, entertainment expansion, and proximity to major demand drivers such as SoFi Stadium and LAX. Notable projects include the AC Hotel Downtown LA by Marriott, Cambria Hotel Burbank Airport, and dual-branded Hilton Garden Inn & Home2 Suites near LAX.
Pipeline By Scale
Source: CoStar Group, Inc.
Rooms Delivered
Source: CoStar Group, Inc.
Los Angeles Sales
Investment activity in Los Angeles’s hospitality market remained moderate through Q3 2025 as investors navigated elevated financing costs and selective lending. Sales volume reached $61.5 million across 14 transactions, averaging $291,472 per key with cap rates at 8.2%. Activity was led by private buyers targeting well-located select-service and coastal infill assets across Santa Monica, West LA, and the LAX corridor. Notable trades included the Hilton Garden Inn LAX/El Segundo and the Best Western Plus Sunset Plaza in West Hollywood, reflecting investor focus on stabilized, high-performing properties with strong leisure demand.
Sales Volume
Source: CoStar Group, Inc.
By the Numbers
- Occupancy: 70.3%
- ADR: $194.12
- RevPAR: $136.51
- Sales Volume: $61.5M
- Under Construction: 2.1K rooms
- Delivered: 992 rooms
- Sale Price/Room: $291,472
