The Downtown Los Angeles hospitality market continued its year-and-a-half-long surge during the year’s second quarter, according to the Los Angeles Downtown Center Business Improvement District’s just released second quarter market report.
Downtown L.A.’s hospitality occupancy level increased to 69%, a 60% increase over the second quarter last year, representing the sixth consecutive quarter of occupancy growth. The submarket’s revenue per available room rose more than 135% from this time last year, recovering nearly 90% of its pandemic-driven drop. This growth follows that of downtown’s residential market, where occupancy and lease rates have already surpassed pre-Covid highsThe office sector is showing signs of life, with a few major leases but is still struggling with high vacancy rates.
“As anticipated, downtown L.A.’s second quarter demonstrated growing momentum in both hospitality and office, the markets hit hardest by the pandemic,” Nick Griffin, executive director of the DCBID, said in a statement. “Looking forward, we expect the market to continue to be driven by our robust residential and surging hospitality markets, with expanding cultural and retail patronage as workers return to the office.”
Downtown has also welcomed two new high-profile hotels during the quarter. Hilton Hotels’ luxury brand, Conrad, opened a 305-room hotel tower as part of the recently completed $1 billion The Grand mixed-use complex and the former NoMad Hotel has been rebranded as Hotel Per La.
“The second quarter of 2022 was a big shot in the arm to our hospitality market and demonstrates the powerful draw of downtown L.A. even in the face of pandemic uncertainty,” Suzanne Holley, president and chief executive of the DCBID, said in a statement. “As our hotels continue to fill and workers return to the office, we’ll experience increasing growth in the retail and food and beverage market.”
