COVID-19’s Impact on the New Orleans Lodging Market

HVS | February 10, 2021

Amid a worldwide pandemic, the lodging industry is facing a downturn that is greater than the past two lodging-market declines combined. Occupancy declined for two years (roughly five points per year) following the landfall of Hurricane Katrina in August 2005, despite the decline in supply due to long-lasting storm damage. Because rooms in the city were limited and recovery work was protracted, average rate (ADR) increased in 2006 before normalizing in 2007. RevPAR for the New Orleans market declined 4.6% in 2006 and a further 9.7% in 2007, which were growth years for the top 25 U.S. markets. Conversely, the city fared relatively well during ...