The performance of the Los Angeles hotel market in 2025 was a tale of two halves. After a strong start to the year marked by robust room demand and elevated revenue, the second half of the year was plagued by widening performance gaps across both hotel classes and geographical segments, as shifting traveler behavior and broader economic caution reshaped hotel demand.
Hotel performance in Los Angeles diverges sharply by property class, location
Early-year revenue surge in midtier hotels gave way to broad-based declines as year progressed
CoStar Analytics
December 22, 2025 | 4:50 P.M.
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