PORTSMOUTH, NH - In the most recent Lodging Econometrics (LE) Market Trend Report, the Los Angeles market has a total of 135 projects/22,586 rooms in the construction pipeline, the second-largest market pipeline in the U.S. behind New York City, which has 146 rooms/25,232 rooms. In Los Angeles, 34 projects/5,771 rooms are currently under construction, projects scheduled to start construction in the next 12 months are at 42 projects/6,359 rooms, and those in early planning are at 59 projects/10,456 rooms.
Los Angeles should continue its fast-paced growth. For the first half of the year, it ranked fifth of all markets for new hotel project announcements into the pipeline, with 8 projects/998 rooms, slightly behind Austin, which announced 9 new projects.
Of the ten market tracts in Los Angeles, the three with the largest hotel construction pipelines are the Los Angeles Central Business District (CBD) with 39 projects/9,255 rooms; the Los Angeles East tract with 27 projects/3,687 rooms; and the Hollywood-Beverly Hills tract with 21 projects/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 presently under construction are: the Los Angeles CBD with 9 projects/13,997 rooms; the Los Angeles North tract with 8 projects/926 rooms; and the Hollywood-Beverly Hills tract with 5 projects/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/3,208 rooms, a growth rate of 3.1%. In 2022, Los Angeles will rank third with a growth rate of 3.7% and a forecast for new hotel openings of 26 projects/4,004 rooms.
There has been a total of 42 hotels sold or transferred during the last four quarters in Los Angeles. Most of those taking place in the Los Angeles North Market Tract.