From the surging wine country to bustling convention centers and sun-drenched beaches, California's hotels generated a record-shattering $28.4 billion in 2023, powering a statewide economic revival that supported over 300,000 jobs while catering to millions of travelers.
Key Takeaways
- In 2023, California's hotel industry generated a total revenue of $28.4 billion, marking a 12.5% increase from 2022
- Los Angeles County hotels contributed $9.2 billion to California's hotel revenue in 2023, representing 32% of the statewide total
- San Francisco hotels saw revenue per available room (RevPAR) reach $245.60 in Q4 2023, up 15% year-over-year
- Statewide hotel occupancy averaged 66.2% in 2023, recovering to 95% of 2019 levels
- Los Angeles hotels reached 71.5% occupancy in December 2023, highest since 2019
- San Francisco occupancy climbed to 74.8% in Q4 2023, up from 65% in 2022
- California's hotel industry employed 285,400 workers in 2023, up 4.2% from 2022
- Los Angeles County supported 92,000 hotel jobs in 2023
- San Francisco hotel workforce totaled 28,500 in 2023, recovering 15% YoY
- California added 12,300 hotel rooms in 2023, total supply 850,200 rooms
- Los Angeles pipeline includes 15,000 new rooms by 2026
- San Francisco under construction: 4,200 rooms as of 2023
- California welcomed 235 million tourists in 2023, 42% stayed in hotels
- Los Angeles hosted 51.5 million visitors, 68% hotel stays in 2023
- San Francisco saw 24.8 million visitors, hotel nights up 18%
California's hotel industry revenue surged in 2023, driven by leisure travel and tourism growth.
Economic Impact
- In 2023, California's hotel industry generated a total revenue of $28.4 billion, marking a 12.5% increase from 2022
- Los Angeles County hotels contributed $9.2 billion to California's hotel revenue in 2023, representing 32% of the statewide total
- San Francisco hotels saw revenue per available room (RevPAR) reach $245.60 in Q4 2023, up 15% year-over-year
- The hotel industry in California supported 312,000 direct jobs in 2023, generating $12.1 billion in wages
- Orange County hotels reported $4.8 billion in total revenue for 2023, driven by leisure demand
- San Diego's hotel sector achieved $3.9 billion in revenue in 2023, a 10.8% growth from pre-pandemic levels
- California's luxury hotels generated 45% of total state hotel revenue in 2023 despite comprising only 18% of rooms
- Midscale hotels in California contributed $6.7 billion in revenue, accounting for 24% of industry total in 2023
- Inland Empire hotels saw revenue surge 22% to $1.2 billion in 2023 due to business travel recovery
- Napa Valley hotels generated $1.1 billion in 2023, with wine tourism boosting ADR by 18%
- Sacramento hotels reported $1.4 billion revenue in 2023, up 14% from 2022
- Monterey Peninsula hotels achieved $850 million in revenue, driven by conferences
- Palm Springs hotels saw $1.3 billion revenue in 2023, with peak season occupancy at 92%
- Santa Barbara hotels generated $950 million, up 11% YoY
- Lake Tahoe hotels contributed $700 million to state revenue in 2023
- California's hotel tax revenue totaled $2.8 billion in FY2023, funding local services
- Group business accounted for 28% of California's hotel revenue in 2023
- Leisure travel drove 55% of hotel revenue growth in California during 2023
- Business transient segment revenue rose 19% to $7.2 billion statewide in 2023
- California's hotels paid $1.9 billion in property taxes in 2023
- Ventura County hotels generated $450 million revenue, up 16% in 2023
- Fresno area's hotels saw $320 million revenue, boosted by agrotourism
- California's independent hotels contributed 15% of total revenue at $4.3 billion in 2023
- Branded hotels dominated with 82% market share of revenue in California 2023
- Q1 2024 hotel revenue in California reached $7.1 billion, up 9% from Q1 2023
- California's hotel industry multiplier effect supported $75 billion in total economic output in 2023
- San Jose hotels generated $1.6 billion revenue in 2023, tech recovery key
- Long Beach hotels contributed $650 million, cruise passengers aiding
- California's economy upscale hotels revenue hit $12.8 billion in 2023
- Total hotel revenue in Riverside County was $1.05 billion in 2023
Economic Impact Interpretation
California's hotels are booming so robustly that they’re practically printing money, with luxury suites and Los Angeles leading the charge, while the entire state reaps the benefits in jobs, taxes, and wine-soaked tourism.
Employment
- California's hotel industry employed 285,400 workers in 2023, up 4.2% from 2022
- Los Angeles County supported 92,000 hotel jobs in 2023
- San Francisco hotel workforce totaled 28,500 in 2023, recovering 15% YoY
- San Diego hotels employed 38,200 people in 2023
- Orange County hotel jobs reached 45,100 in 2023
- Average hotel wage in California was $28.45 per hour in 2023
- Napa Valley hotels employed 6,200 workers seasonally in 2023
- Palm Springs area had 12,400 hotel jobs in 2023 peak season
- Sacramento hotel employment 18,900 in 2023
- Monterey Peninsula supported 9,800 hotel jobs in 2023
- Santa Barbara hotels employed 7,500 in 2023, up 10%
- Lake Tahoe hotel workforce 8,200 year-round equivalent 2023
- Inland Empire hotels added 5,400 jobs in 2023
- Fresno hotel jobs totaled 6,100 in 2023
- Ventura County 5,200 hotel employees in 2023
- San Jose Silicon Valley hotels employed 14,300 in 2023
- Long Beach hotel jobs 7,800 in 2023
- Riverside County added 4,900 hotel jobs in 2023
- Housekeeping staff comprised 22% of CA hotel workforce, averaging $20.12/hr 2023
- Front desk clerks 15% of jobs, $18.67/hr statewide 2023
- Food service workers in hotels 28% of employment, $17.89/hr 2023
- Managers and supervisors 8% of hotel jobs, $45.23/hr average 2023 CA
- California hotel turnover rate dropped to 42% in 2023 from 55% in 2022
- 65% of CA hotel workers were part-time in 2023
- Diversity: 48% Hispanic/Latino in CA hotel workforce 2023
- Female representation 52% in hotel employment statewide 2023
- Training programs trained 12,500 new hotel workers in CA 2023
- Unionized hotels 18% of total, employing 51,000 in CA 2023
- Q1 2024 hotel employment up 3.1% to 294,200 statewide
- LA luxury hotels 25,000 jobs, SF upscale 9,200 in 2023
- Anaheim resort hotels 18,500 employees 2023
- San Diego convention hotels 12,400 staff 2023
Employment Interpretation
While California's hotel industry has impressively re-fluffed its economic pillow with rising employment numbers and wages, it's still resting on a somewhat lumpy mattress of high turnover, part-time positions, and significant pay disparities between the front desk and the front office.
Hotel Supply
- California added 12,300 hotel rooms in 2023, total supply 850,200 rooms
- Los Angeles pipeline includes 15,000 new rooms by 2026
- San Francisco under construction: 4,200 rooms as of 2023
- San Diego new openings added 2,100 rooms in 2023
- Orange County supply grew 1.8% to 68,500 rooms in 2023
- Napa Valley added 800 boutique rooms since 2020, total 5,200 in 2023
- Palm Springs opened 1,200 new rooms in 2023 expansions
- Sacramento hotel supply 14,900 rooms, +900 new in 2023
- Monterey added 400 luxury rooms in 2023, total 7,100
- Santa Barbara supply stable at 6,800 rooms, renovations dominant 2023
- Lake Tahoe total rooms 12,500, seasonal supply adjustments 2023
- Inland Empire grew to 28,000 rooms, +1,200 in 2023
- Fresno added 600 rooms, total 9,200 in 2023
- Ventura County supply 5,500 rooms, minor growth 2023
- San Jose pipeline 3,500 rooms under construction 2023
- Long Beach added 800 rooms near port, total 8,000 2023
- Riverside County supply 18,400 rooms, +700 new 2023
- Luxury segment 22% of CA rooms, 152,000 rooms in 2023
- Upper upscale 28% share, 238,000 rooms statewide 2023
- Midscale 25%, 212,500 rooms in California 2023
- Independent hotels 12% of supply, 102,000 rooms 2023 CA
- 45 new hotels opened statewide in 2023, averaging 273 rooms each
- Renovations invested $2.1 billion in existing CA hotels 2023
- Boutique hotels grew 5% in room count to 45,000 rooms 2023
- Extended-stay supply 68,000 rooms, +2,000 in 2023 CA
- Q1 2024 added 3,100 rooms statewide
- LA downtown pipeline 8,500 rooms by 2025
- SF SoMa district 2,800 rooms under construction 2023
- San Diego Gaslamp added 1,100 rooms 2023
- Anaheim added 1,500 resort rooms 2023
Hotel Supply Interpretation
California's hotel industry, in a relentless and impressively specific sprawl, is building a kingdom of rooms so vast you might conclude they're expecting a surprise invasion of very discerning, renovation-loving tourists.
Occupancy Rates
- Statewide hotel occupancy averaged 66.2% in 2023, recovering to 95% of 2019 levels
- Los Angeles hotels reached 71.5% occupancy in December 2023, highest since 2019
- San Francisco occupancy climbed to 74.8% in Q4 2023, up from 65% in 2022
- San Diego average annual occupancy was 72.3% in 2023, driven by conventions
- Orange County hotels averaged 73.1% occupancy in 2023, leisure dominant
- Napa Valley peak season occupancy hit 89.2% in summer 2023
- Palm Springs winter occupancy averaged 91.4% in 2023-24 season
- Sacramento hotels saw 68.7% average occupancy in 2023
- Monterey occupancy reached 76.5% annually in 2023
- Santa Barbara average occupancy was 70.9% in 2023, up 12% YoY
- Lake Tahoe summer occupancy averaged 85.3% in 2023
- Inland Empire occupancy rose to 64.8% in 2023 from 58% in 2022
- Fresno hotels averaged 62.1% occupancy in 2023
- Ventura County occupancy hit 67.4% average in 2023
- San Jose occupancy recovered to 69.2% in 2023
- Long Beach average occupancy 70.1% in 2023, boosted by events
- Riverside County hotels 65.3% occupancy in 2023
- California luxury hotels averaged 78.4% occupancy in 2023
- Midscale segment statewide occupancy 63.7% in 2023
- Economy hotels in CA reached 61.9% occupancy, highest post-COVID
- Upper upscale occupancy averaged 75.2% across California in 2023
- Group segment occupancy 72.1% in 2023
- Weekend occupancy statewide averaged 74.6% vs 61.8% weekdays in 2023
- Q1 2024 California occupancy 64.5%, up 7% from prior year
- LA Convention Center adjacent hotels 82% occupancy during major events 2023
- San Francisco luxury hotels 81.3% occupancy peak in 2023
- San Diego beachfront properties 79.8% average occupancy 2023
- Anaheim Disneyland area hotels 88.7% occupancy in 2023
- California's average daily rate (ADR) for hotels was $212.45 in 2023, up 8.7% from 2022
- RevPAR statewide reached $140.67 in 2023, 21% above 2022 levels
- Los Angeles ADR averaged $238.90 in 2023
- San Francisco RevPAR $183.50 annually 2023
Occupancy Rates Interpretation
While California's hotels are collectively sighing in relief at near pre-pandemic occupancy levels, the state's recovery is clearly a tale of two economies: one where tourists and luxury travelers gleefully prop up beachfronts and wine country, and another where business-centric cities and budget stays are still anxiously smoothing out the welcome mat.
Tourism Visitors
- California welcomed 235 million tourists in 2023, 42% stayed in hotels
- Los Angeles hosted 51.5 million visitors, 68% hotel stays in 2023
- San Francisco saw 24.8 million visitors, hotel nights up 18%
- San Diego 36.2 million visitors, generating 28 million hotel room nights 2023
- Orange County 40.1 million visitors, 85% leisure, hotel focused 2023
- International visitors to CA 15.7 million in 2023, 72% hotel stays
- Domestic leisure travelers 165 million trips to CA hotels 2023
- Group meetings generated 12.5 million hotel room nights statewide 2023
- Napa Valley 3.8 million visitors, 92% hotel or lodging 2023
- Palm Springs 8.2 million visitors winter 2023-24, high hotel usage
- Sacramento 15.4 million visitors, up 11% hotel demand 2023
- Monterey 7.9 million visitors, conferences key for hotels 2023
- Santa Barbara 4.2 million visitors, luxury hotel stays 65% 2023
- Lake Tahoe 14.5 million visitors annually, peak summer hotel fills 2023
- Inland Empire 22.3 million day/overnight visitors, hotels growing 2023
- Fresno/Clovis 5.6 million visitors, agrotourism hotel boost 2023
- Ventura 4.1 million visitors, beach hotels popular 2023
- San Jose 12.7 million business/leisure visitors 2023
- Long Beach 7.8 million visitors, cruise 1.2 million hotel linked 2023
- Riverside County 27.4 million visitors, desert resorts key 2023
- Average length of stay in CA hotels 2.8 nights in 2023
- 58% of CA visitors from out-of-state, driving hotel demand 2023
- Top markets: NY 8.2M, TX 7.1M visitors to CA hotels 2023
- Millennials 42% of hotel guests, Gen Z 18% in CA 2023
- Families with children 29% of hotel bookings statewide 2023
- Solo business travelers 22% of room nights 2023 CA
- Q4 2023 visitor arrivals up 6% to 60 million quarterly
- LA conventions drew 4.2 million attendees, 2.8M hotel nights 2023
- SF tech conferences 1.1 million visitors hotel based 2023
- San Diego Comic-Con 135,000 attendees, 90% hotel stays 2023
- Disneyland Resort 18.6 million visitors, massive hotel draw 2023
Tourism Visitors Interpretation
The Golden State's hotels are so packed with everyone from families and Comic-Con fans to tech conference-goers and wine tasters that the entire industry seems to be running on a cheerful, "Thank you for your patience; your California dream is currently on hold" message.
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