COVID-19’s Impact on the Phoenix Lodging Market

Michael Smithson | February 5, 2021

By Michael Smithson, McKenna Luke During the Great Recession, Metro Phoenix’s[1] occupancy fell nearly 16 points from its pre-recession peak of 68.2% in 2006 to 52.4% in 2009. However, occupancy fell from the 2019 peak of 70.5% to 47.0%[2] in 2020, reflecting roughly a 24-point correction. Although average daily rate (ADR) declined 19% from a pre-recession peak of $124.80 in 2008 to a low of $100.94 in 2010, ADR only fell 14% in 2020, from $132.64 in 2019 to $114.44 in 2020. The impact of the COVID-19 pandemic on Phoenix has been two-fold. The first quarter is peak season in Phoenix; as such, some of the strongest months out of the yea...