Dear Friends-

The Los Angeles wildfires left an immense impact, displacing countless residents and causing widespread devastation. In the face of this crisis, local hotels opened their doors to welcome evacuees, reflecting a community coming together in times of hardship.

Between January 7 and 11, the Pasadena/Glendale/Burbank area experienced the strongest effect, with a notable 30% increase in hotel occupancy compared to the same period last year. Similarly, the Los Angeles East submarket, which covers areas along the Interstate 10 corridor, Pomona Freeway, and Interstate 210 stretching nearly to Ontario, saw comparable changes.

An overwhelming eight out of ten hospitality submarkets in Los Angeles reported increased room demand, with six showing double-digit gains. Midweek occupancy levels spiked dramatically last week, though these levels tempered over the weekend as evacuation orders began to lift. Interestingly, room rate increases were subdued across most submarkets despite the higher demand.

The Hollywood/Beverly Hills hospitality submarket, predominantly along Santa Monica Boulevard, was an exception, with a 6% decline in hotel occupancy but a notable 22% rise in room rates. This area features many high-end properties, and during the fires, guests often relocated from nearby homes, renting suites and connecting rooms at premium rates.

Data for January 7-11 indicates similar trends across different hotel chain scales, with significant occupancy increases but muted rate hikes. High-end hotels were exceptions, seeing minimal occupancy changes but notable rate increases. Chain-affiliated hotels on the lower end exhibited the most significant occupancy changes, though these shifts didn't lead to substantial rate increases beyond typical patterns.

As we move forward, it's expected that hotel occupancy in the Los Angeles region will fluctuate with evacuation orders. Hotels offering kitchen facilities are likely to see prolonged high occupancy as residents displaced by the wildfires seek longer-term accommodations.

Amid the devastation, the hospitality industry's response shines as a beacon of compassion, offering much-needed refuge to those affected by the fires. How are you holding up with all this going on?

Stay positive.  Remember, if you need a smile, I will lend you mine.