DTLA Hospitality Report 2024

HOSPITALITY

ABOUT DTLA ALLIANCE

Founded in 1998, the DTLA Alliance has been a catalyst in Downtown Los Angeles’ transformation into a vibrant 24/7 mixed-use destination for over 25 years. A coalition of more than 2,000 property owners in the Downtown Center, the DTLA Alliance is committed to enhancing the quality of life in Downtown LA.

The mission of the Economic Development team is to ensure that DTLA remains the premier choice for office, residential, hospitality, retail, and cultural investment. We provide services to support and promote investment and development in DTLA, including:

• Market & Research Reports

• Tours & Events

• Development Consulting

• Requests for Information

• Press & Media Inquiries

Whether you need information on construction and development, insights on the DTLA market, finding a location for your business, or you just want to learn more about Downtown’s market sectors and dynamics, we are your best source for information about DTLA

To learn more about the Downtown LA and the DTLA Alliance, visit DowntownLA.com

DEFINITION OF DOWNTOWN LA

The DTLA Alliance defines Downtown Los Angeles as the area bounded by the 110, 101 and 10 freeways and the LA River, plus Chinatown, City West, and Exposition Park. The projects contained in this report are within a portion of Downtown Los Angeles, shown on the map to the left.

DOWNTOWN CENTER

HOSPITALITY

EXECUTIVE SUMMARY

Once a strictly 9-5 commercial destination, Downtown Los Angeles has evolved into one of the most dynamic urban centers in the country. Alongside tremendous growth in residents, an influx of new dining and nightlife establishments, and the opening of several major arts & culture destinations, DTLA has become a major center for hospitality. Since 1999, the number of hotel rooms has doubled to over 10,000 with the arrival of a variety of new brands and concepts. This report explores how and why Downtown has become THE place to stay when visiting Los Angeles.

The DTLA hospitality market is defined by its size and diversity. Every major hotel operator has planted a flag in the area, with Marriott leading the way with over 40% of the total inventory. Since the end of the pandemic, the market has rebounded strongly and is now performing just slightly below where it was in 2019. Looking ahead, over 7,000 new rooms are in the pipeline, with the bulk of those intending to serve an expanded and upgraded convention center.

At the heart of this success is Los Angeles’ place as a premiere destination for visitors of all kinds. Whether it is the world-famous weather, its unparalleled dining scene, more museums and theaters than any other U.S. city, the diversity of its 80 districts and neighborhoods, or its diverse and dynamic commercial sector, LA draws over 50 million visitors per year. Within this sprawling metropolis, DTLA stands alone as a truly urban experience, itself welcoming over 17 million visitors per year. People choose to stay in DTLA for many reasons, but chief among them are its walkability, the density and diversity of experiences, and the easy access it provides to the rest of the region.

A significant driver of visitors to Downtown is the volume and variety of spaces for conventions, events, or other meetings. The LA Convention Center, which welcomes over 2.5 million visitors per year to its over 700,000 SF of exhibit hall space and nearly 150,000 SF of meeting space, is the key driver. Nearly 700,000 SF of additional meeting space can be found in area hotels, along with a wealth of unique non-traditional event spaces and outdoor venues that give events a more distinct feel.

Another key factor shaping hospitality development in Downtown is the upcoming LA 2028 Summer Olympic Games, when LA will welcome the world, and Downtown will play a starring role. In addition to hosting several events at the Convention Center, Crypto.com Arena, and L.A. LIVE, DTLA will play host to the “Olympic Family Hotels” where leaders from the Olympic movement will stay during the games.

Within DTLA there are three major Hospitality Clusters, which include most of its hotel rooms. In terms of sheer numbers, the Bunker Hill/Financial District is currently the biggest, while the South Park/Sports & Entertainment District is a close second and will ultimately become the largest as new inventory is developed. The Historic Core represents a different kind of hospitality experience, with many rooms located in historic buildings. Outside of these clusters are several distinct neighborhoods that offer plenty to see and do.

Finally, no exploration of the hospitality industry is complete without a breakdown of the key demographic groups that visit Downtown. Using data from Placer.ai and Experian Mosaic, we can see that DTLA visitors are as diverse as the area itself, coming from across the country and across the generational spectrum.

BY THE NUMBERS

50.3M VISITORS TO LOS ANGELES

LOS ANGELES

$34.5B ECONOMIC IMPACT

4.3M INTERNATIONAL VISITORS

17+M VISITORS TO DTLA

10,000 + HOTEL ROOMS

2.4M OVERNIGHT STAYS

6,000 + RETAIL, FOOD, AND BEVERAGE BUSINESSES

743 RETAIL BUSINESSES PER SQUARE MILE

157 FOOD & BEVERAGE BUSINESSES PER SQUARE MILE

Source: LA Tourism, Placer.ai, ESRI

HOSPITALITY

WORLD-CLASS DESTINATION

LOS ANGELES

Los Angeles is a trend-setting global metropolis with a rich heritage. The region is world-famous for its beautiful mild weather, with 292 days of sunlight/partial sunlight a year and an average high temperature of 75°F and an average low of 56 °F. Spanning more than 80 districts and neighborhoods, Los Angeles offers endless opportunities for exploration, including more museums and theaters than any other U.S. city. Los Angeles has one of the best dining scenes in the country, offering everything from street food to Michelin-starred and James Beard Award-winning restaurants.

WORLD-CLASS DESTINATION

DTLA

Since the beginning of LA’s history, Downtown has been the region’s hub for cultural and commerce. With the phenomenal growth of its revitalization, DTLA has re-emerged as the city’s epicenter for investment and innovation. Today it is home to a world-class dining and nightlife scene and several of LA’s most notable arts & culture and entertainment destinations. It is distinct from the broader LA area in its walkability, density and diversity of amenities, and unparalleled access to transit.

This heat map shows the most popular locations for DTLA’s 17+ million visitors in 2023. Several noteworthy areas, identified in dark yellow, had between 1.2 and 2.4 million visits during the year, while the top three locations in red each saw over 2.5 million visits.

Source: Placer.ai, ESRI

HOSPITALITY

CONVENTIONS & EVENTS

One of the principal drivers of visitation to DTLA is its wealth and diversity of space for conventions, events, and other meetings. The LA Convention Center plays a key role in this, hosting everything from major professional conferences, major regional events, and a variety of special attractions. However, it is far from the only option available for event planners, with nearly 700,000 SF of meeting space at Downtown hotels, tens of thousands of square feet of space at non-traditional venues, and several outdoor venues.

720,000

SF OF EXHIBIT HALL SPACE

147,000

SF OF MEETING ROOM SPACE

LOS ANGELES CONVENTION CENTER

EVENTS AT THE CONVENTION CENTER

Auto Show

Anime Expo

LA Comic Con LA Art Show

CONVENTIONS & EVENTS

The Biltmore

Vibiana

Music Center Plaza

Grand Park

HOSPITALITY

DTLA HOSPITALITY MARKET OVERVIEW

The DTLA hospitality market has experienced tremendous growth having just passed the 10,000 room mark. The current inventory is also tremendously diverse, consisting of a broad range of major global operators, smaller boutique chains, and independent hotels. The strength of the market was affirmed with its strong recovery from the pandemic, setting the stage for another wave of growth leading up to the 2028 Olympic Summer Games.

QUARTERLY STAT TRACKING

Both occupancy and RevPAR made significant gains in 2022 and ticked up even further in 2023, now sitting roughly 10% below where they were in 2019.

Source: CoStar

PROJECT PIPELINE

There are approximately 7,000 new hotel rooms in development in Downtown LA. While the bulk of the new rooms will be in existing Hospitality Clusters, four proposed projects in the Arts District represent the start of a new cluster in one of LA’s hottest and fastest growing neighborhoods.

TriCal Hotel

Mama Shelter

DTLA Hospitality Landscape

Existing Hotels

Pipeline Projects

Attractions

Hospitality Clusters:

Bunker Hill/Financial District

South Park/Sports & Entertainment District

Historic Downtown

Neighborhoods:

n Arts District

n Chinatown

n Civic Center

n Fashion District

n Little Tokyo

HOSPITALITY

HOSPITALITY CLUSTER: BUNKER HILL/FINANCIAL DISTRICT

Dense, diverse, and dynamic, the Financial District is the heart of DTLA. Sitting at the center of the region’s Metro rail system, and possessing an unparalleled selection of restaurants, it is the epitome of convenience. Rental and condo properties have added a residential community that keeps the neighborhood buzzing through the day and into the evening.

FIGat7th

The BLOC

The Broad Grand Park

B of A Plaza

Omni

Westin Bonaventure

Sheraton Grand

HOSPITALITY

HOSPITALITY CLUSTER: SOUTH PARK/SPORTS &

ENTERTAINMENT DISTRICT

South Park is the premier sports and event destination of Southern California, with Crypto.com Arena, the L.A. LIVE entertainment complex, and the L.A. Convention Center attracting more than two million visitors annually. The area has also experienced massive population growth, becoming its own full-fledged residential community.

Grammy Museum

L.A. LIVE

Arena

Mastro’s Ocean Club

South Park Commons

HOSPITALITY CLUSTER:

SOUTH PARK/SPORTS & ENTERTAINMENT DISTRICT

JW

Ritz-Carlton

Hotel Figueroa

Residence Inn

E-Central

HOSPITALITY

HOSPITALITY CLUSTER:

HISTORIC DOWNTOWN

With its classic buildings adapted for office and residential use, this area boasts many of the things that originally put LA on the world stage – ornate movie palaces, showcase architecture, and the bustling Broadway corridor. It’s also where visitors can experience DTLA’s contemporary reputation as a one-of-a-kind food, arts, and shopping destination.

Angels Flight

Orpheum Theatre

The Bradbury

Grand Central Market

Apple Tower Theatre

HOSPITALITY CLUSTER:

DoubleTree

LA Athletic Club

The Haas

The Hoxton Proper Hotel

STILE by Kasa

HOSPITALITY

NEIGHBORHOODS

Outside of the major Hospitality Clusters, DTLA’s dynamic and diverse neighborhoods offer a wealth of attractions, amenities, and experiences.

FASHION DISTRICT

Once known exclusively as Downtown’s wholesale quarter, the Fashion District now counts more than 1,000 retail stores in its 100 blocks, selling everything from fabrics to flowers, and of course, fashion. Crowds come to peruse the deals at Santee Alley or take advantage of frequent “Sample Sale” events.

ARTS DISTRICT

Situated on the eastside of DTLA, adjacent to the LA River and railyards, the Arts District is famously home to galleries and cultural spaces, live/ work lofts, and unique restaurants and retail in converted warehouses and former factories. It’s also become a haven of innovative space for technology, media, and other creative companies.

Los Angeles Flower Market

Manuela

Santee Alley

City Market South

ROW DTLA

6th Street Viaduct

NEIGHBORHOODS

CHINATOWN

This area has managed to remain a destination for authentic regional Chinese cuisine and culture. More recently, it has attracted several new exciting culinary and nightlife ventures. With several new residential developments in the works, the area is poised for significant growth in the coming years.

CIVIC CENTER

In addition to Los Angeles City Hall, LA County Hall of Administration, and several municipal, county, and federal courthouses, the Civic Center is also home to Grand Park, one of LA’s best outdoor venues for events and activations, and the Cathedral of Our Lady of the Angels, seat of the Archbishop of Los Angeles.

LITTLE TOKYO

Little Tokyo boasts some of Downtown’s finest sushi and noodle restaurants while also embracing an increasingly diverse demographic. By day, the compact, pedestrian, and familyfriendly district draws foodies and cultural visitors, while evenings draw a more youthful, energetic crowd.

Chinatown Central Plaza

Japanese Village Plaza

Grand Park

HOSPITALITY

GREATER DOWNTOWN

Just outside of DTLA, in the “Greater Downtown” area, you will find some of LA’s biggest attractions and some of its most hip and interesting neighborhoods.

Dodger

GET ON THE TRAIN

One of the biggest benefits of staying in DTLA is the ease with which attractions around the region can be accessed by LA’s growing rail system. Between recent projects like the Regional Connector that improve connectivity through Downtown and upcoming projects that will expand access to new areas, experiencing LA without a car is becoming more and more of a possibility if Downtown is your hub.

Santa Monica/Venice

NATIONAL VISITATION INSIGHTS

In 2023, 2.6 million visitors who live more than 250 miles came to DTLA, which was 4.2% higher than for 2022 and 20.1% higher than for 2021. Overnight visitors, who come from across the generational spectrum, spent an average of 2.4 days in DTLA, with 33% staying for 3 or more days. The median income for these visitors was 22% higher than the national average.

TOP 10 DTLA TRIP ORIGINATION LOCATIONS (Number of Visitors)

NATIONAL VISITATION INSIGHTS

Further insight into the DTLA visitor audience comes from Experian Mosaic, a consumer segmentation tool. This data shows which consumer segments represent the largest share of DTLA’s visitors and, by comparing to a national index, which sub-groups are most strongly drawn to the area.

HOSPITALITY

LA28: DTLA WELCOMES THE WORLD

DTLA’s growth into a major hospitality center has set the stage for it to play a starring role in the biggest of all events coming to LA, the 2028 Olympic Summer Games. Not only will the area host several sporting events, it will also play host to the “Olympic Family”, the leaders of the global Olympic movement, who will be staying in Downtown throughout the games.

OLYMPIC FAMILY HOTELS

The LA28 proposed Olympic Family Hotels will be located in in the Downtown Sports Park at the heart of the LA28 Games Plan. This central location in DTLA is just steps away from a number of exciting LA28 venues as well as downtown restaurants, entertainment venues, and nightspots.

PROJECTS IN THE WORKS:

• New JW Marriott: 850 rooms and 110,000 SF of new meeting space

• Convention Center modernization and expansion

• Olympic Legacy Street Improvements Plan

• Purple Line extension to Westwood (Athletes Village)

• LAX Automated People Mover and Rent-A-Car facility

• Airport Metro Connector: K Line—connects to Expo Line for all-rail access to DTLA

LA28: DTLA WELCOMES THE WORLD

Olympic and Paralympic events will be held across the Los Angeles region at world-class stadiums, arenas, and venues from the Los Angeles Memorial Coliseum to Sofi Stadium. Multiple sports parks across the LA area will maximize the city’s existing world-class facilities, unique geography, and iconic backdrops to share the Games experience across Southern California.