In the most recent Lodging Econometrics Market Trend Report, the Los Angeles market has a total of 135 hotel projects with 22,586 rooms in the construction pipeline, the second-largest market pipeline in the U.S. behind New York City, which has 146 rooms with 25,232 rooms. In Los Angeles, 34 projects with 5,771 rooms are under construction. Projects scheduled to start construction in the next 12 months are at 42 projects with 6,359 rooms, and those in early planning are at 59 projects with 10,456 rooms.
Los Angeles should continue its fast-paced growth, according to LE. For the first half of the year, it ranked fifth of all markets for new hotel project announcements into the pipeline, with eight projects with 998 rooms, slightly behind Austin, which announced nine new projects.
Data Dive
Of the 10 market tracts in Los Angeles, the three with the largest hotel construction pipelines are the Los Angeles central business district with 39 projects and 9,255 rooms; the Los Angeles East tract with 27 projects and 3,687 rooms; and the Hollywood-Beverly Hills tract with 21 projects and 3,306 rooms. These three market tracts combined account for 64% of the Los Angeles market’s total construction pipeline.
The top three market tracts with the highest count of projects under construction are: the Los Angeles CBD with nine projects and 13,997 rooms; the Los Angeles North tract with eight projects and 926 rooms; and the Hollywood-Beverly Hills tract with five projects and 820 rooms.
LE’s forecast for new hotel openings predicts the Los Angeles market will rank sixth in the nation for new hotel openings in 2021 with 19 projects and 3,208 rooms, a growth rate of 3.1 percent. In 2022, Los Angeles will rank third with a growth rate of 3.7 percent and a forecast for new hotel openings of 26 projects with 4,004 rooms.
There have been a total of 42 hotels sold or transferred during the last four quarters in Los Angeles. Most of those have taken place in the Los Angeles North Market Tract.