Los Angeles has always been synonymous with fame, thanks to Hollywood and its entertainment production powerhouses. In addition to awards shows – think Grammys, Emmys, Oscars, etc. – Los Angeles pulls travelers thanks to its weather, many area attractions and convention business.
Some hotel investors are optimistic that a new wave of high-profile events will continue to diversify LA’s offerings and buoy the market’s post-pandemic recovery. That’s because this upcoming glut of events is centered around sports.
“Los Angeles certainly has some very high-profile events that will contribute to a hotel’s profitability,” says Robert Feist, vice president of Atlas Hospitality Group. “The upcoming events, such as the World Cup and the Olympics, are great events for the city.”
High-profile breeds high-profile
The region will take center stage among the sports world over the next few years as it hosts the FIFA World Cup and NBA All-Star Game in 2026, Super Bowl LXI in 2027 and the Summer Olympic games in 2028. In addition to these high-profile events, the LA region hosts regular games from its National Football League (NFL’s Chargers and Rams), National Basketball League (NBA’s Lakers and Clippers), Major League Baseball (MLB’s Dodgers and Angels, National Hockey League (NHL’s Kings and Ducks) and Major League Soccer (MLS’s Galaxy and LAFC) teams.
The Clippers, one of the area’s two basketball teams, is set to receive a new home at the Intuit Dome, which is being built in Inglewood, about 11 miles southwest of Downtown Los Angeles. Hotel developers are certainly taking notice.
“The Sofi Stadium (home of the NFL’s Rams and Chargers) and Intuit Dome developments have already shown a boast in area development of hotels,” Feist adds. “Continuing gentrification of the area will contribute to new hotels.”
So far, these new hotel developments include the 150-room Fairfield Inn & Suites, the 174-room Arya Hotel and the 300-room Kali Hotel and Rooftop, which will be part of the Hollywood Park development that includes SoFi Stadium and YouTube Theater. The Intuit Dome and Kia Forum concert venue will be within walking distance of the new Autograph Collection hotel by KPC Development Company, which broke ground in October.
John Petty, vice president of real estate and construction for KPC, believes the Inglewood area is the ideal spot for this project.
“[We] had been waiting for the right location to launch the first of at least three locations in Southern California for a brand of hotel that reflects our ‘Elegance With an Edge’ attitude of hospitality,” he says. “Given the high-profile location of Hollywood Park, its upward trend in development and its emergence as a world-class destination for entertainment, it was a natural choice for the initial build.”
The Kali Hotel is set to open in spring 2026, making it a natural fit for the upcoming summer Olympics.
“We have already been approached by the Olympic Committee to secure rooms for the 2028 Games,” Petty notes. “The FIFA games and Super Bowl will serve as great warm-up events for the Olympic games.”
Tony Muscio, senior managing director for JLL's Hotels & Hospitality group, believes the area’s focus on sports has led to some positive changes that will continue to benefit area hoteliers.
“LA’s sports infrastructure has improved the city,” he says. “It’s been an impetus to LAX [airport] renovating and expanding.”
Outside of the sports epicenters of Inglewood and Downtown Los Angeles, Muscio sees these major upcoming events elevating the area’s luxury offerings.
“The luxury market in Los Angeles contains some of the best hotels in the world and spans from West Hollywood to Beverly Hills to Santa Monica,” he explains. “Demand for these hotels will be even greater during these high-profile events and will give these hotels even more exposure to new clientele.”
A rising tide?
High interest rates have stymied hotel development in many regions, though Feist notes that the high-end Aman Hotel in Beverly Hills is currently under construction. The 78 all-suite hotel is set to open in 2027 after pushing back the completion timeline by a year. The hotel is part of the larger One Beverly Hills, which will unify the Beverly Hilton and Waldorf Astoria with 10 acres of botanical gardens and open space. It will also introduce the first Aman hotel, branded residences and exclusive members club to the West Coast.
Those who assume the rising tide of high-profile events may lift all boats (hotels) may be right…to some extent. Feist, for one, believes the diversification and investment in sports will bolster the leisure segment in some areas.
“Prior to COVID, the Downtown LA hospitality market was driven by corporate and convention business,” he says. “Post-COVID, it’s more of a combination of those generators, on a lessor scale, and now includes leisure and event business more than before.”
Feist adds that Downtown’s hospitality market has seen an increase in larger conventions and events thanks to the Intercontinental, Hotel Indigo, and the recently opened Moxy and AC Hotel.
“The area has also seen the financial struggles of the Park Hyatt Hotel development,” he adds. “The stability of the Downtown market has impacted current and future development. The office market is still depressed, and this is having a dampening effect on development and the ability to gain financing for developers.”
Feist’s overall take is that Downtown needs more hotel supply if it wants to keep growing its convention and event businesses. Muscio adds that although LA has a lot to offer, its leisure segment is down as well.
“Demand generators like the beaches, theme parks, shopping districts and sporting events continue to drive leisure demand in Los Angeles, while the entertainment industry and production drives corporate demand,” he says. “Compared to pre-pandemic, however, leisure is down as other destinations, such as Europe and Mexico, are being explored, particularly as the U.S. dollar remains strong. This is expected to swing back, though, especially with major events coming to Los Angeles.”
Muscio notes that the entertainment industry is also ramping back up after the Writer’s Guild of America (WGA) and Screen Actors Guild (SAG) strikes. Overall, Muscio remains bullish on Los Angeles’ long-term viability as a hotel hotspot. When asked what advice he would give to potential hotel developers and investors considering Los Angeles, his recommendation was simple and straightforward.
“Just do it,” he says. “The Los Angeles market is only getting better with mega events like the FIFA World Cup, the NBA All-Star Game, Super Bowl and the Olympics coming up. And the entertainment industry – centered in Los Angeles, the entertainment capital of the world – is ramping back up with your favorite films and TV series.”
Those who tune in for the next couple of years will surely see whether Muscio is right or not. The only question is whether they’ll do so as active players or as passive observers on the sidelines.