For Denver resorts, the primary 5 months of 2024 have been considerably risky, with March declines being offset by April features. This development could be partially attributed to Easter falling in March this 12 months. After two months of RevPAR declines in Denver in June and July, August was a stellar month for the town’s resorts, with the RevPAR enhance nearing 10%. Nonetheless, the declines in June and July resulted in little development for the town in the summertime of 2024, as total RevPAR development by way of August is lower than 0.5%.
No vital adjustments within the fourth quarter will probably end in little to no RevPAR development in Denver from 2023 to 2024. This nominal development is coupled with a scarcity of internet provide adjustments in 2023 or 2024, as any new provide has been offset by resort closures. Further elements for 2024 embrace normalizing leisure demand, renovations at resorts all through the market, the continued impacts of recent provide that opened in 2021 and 2022, and softer company journey patterns on account of some financial uncertainty throughout the election 12 months.
With top-line revenues remaining flat, rising prices for payroll, provides, property taxes, utilities, and insurance coverage are chopping into resort profitability ranges all through the town. When will income development resume for the resort trade in Denver? Right here is our present outlook for lodging traits within the Denver Metro space.
Hoteliers will probably hold price development at a minimal till occupancy ranges are up one to 2 extra factors, and a everlasting shift in company demand given the diminished journey traits and work-from-home insurance policies will probably forestall a full restoration to pre-COVID ranges. Nonetheless, an expanded and renovated conference heart, the brand new Nationwide Western Heart, and improvement at and surrounding the airport ought to all help resumed development for Denver resort metrics in 2025.
Given these elements, we’d anticipate occupancy features of 1.5% in 2025 and 1.0% in 2026, with price development staying close to the 1.5% mark in 2025 and rising to 2.0% in 2026. This tempo would put RevPAR development close to 3.0% in 2025 and 2026.
Our strategic positioning inside native markets empowers us to conduct major interviews with key market individuals. This strategy ensures we acquire real-time insights and present information for every market we function in. For extra details about the Denver market or for assist making knowledgeable funding choices that align along with your targets and threat tolerance, please contact Katy Black.
