Los Angeles Hotels See More Visitors So Far in 2025

Los Angeles hotels saw an uptick in occupancy in the first half of the year compared to the same period last year, but increases could be smaller in the second half.

In the first six months of 2025, hotels in Los Angeles had a 2.7 percent increase in occupancy to 72.3 percent compared to 70.4 percent in the same period last year, L.A. Business First reported, citing data from CoStar.

Hotels in the city also saw a 1.6 percent increase in the average daily rate, or the average price at which rooms are sold in H1, to $197.01 so far this year from $193.86 in the same period last year. Revenue per available room, measured by multiplying occupancy and average daily rate, increased 4.3 percent to $142.46 in the first six months of the year from $136.54 in the same six months last year.

Leisure travel is expected to stagnate in the second half of the year, according to CoStar. A sluggish post-pandemic recovery and ongoing wildfire fears could be to blame, according to SF Gate.

“Top-line performance is still growing even in the current environment. Until consumer confidence improves, however, demand is going to remain softer — especially in the middle and lower-price tiers,” Amanda Hite, president of CoStar hotel research firm STR, said in a statement last month of the broader U.S. hotel market.

Some Los Angeles hoteliers have a grim outlook for the hospitality industry in the face of the so-called Olympic wage hike for hospitality and airport workers, which went into effect July 1. As a result, some companies have paused renovations or looked to sell their hotel properties entirely.

“I’ve never seen so many hotels on the market right now, and none of them are selling,” Hotel Angeleno owner Mark Beccaria told The Real Deal in May. “No one wants to pay anywhere close to what they’re worth.”

Mayor Karen Bass signed the ordinance in May, but the issue could come before voters in next June’s election.

The Los Angeles Alliance for Tourism, Jobs and Progress — a coalition of airlines, hotels and concession companies — submitted more than 140,000 petition signatures from voters to the city last month in the hope of repealing the law and putting it on the June 2026 ballot. It needed to submit about 93,000 signatures by the June 30 deadline to qualify.

The City Clerk’s office is currently verifying the signatures and will either approve or deny the ballot measure based on its count. — Chris Malone Méndez