LA's momentum: A region-by-region look at what's next

Editor's note: To view the complete free webinar on demand, register here.

NATIONAL REPORT — Hotel investors’ increasing emphasis on submarkets is strengthening pro forma assumptions for adding strategic big-city flags.

This micro focus leverages the global lift of multi-faceted urban centers such as Los Angeles while layering in the rewards and resilience of assets and neighborhoods that essentially make their own markets.

Getting granular allows investors to refine their search across localized economies like those in LA's six distinct, diverse regions. Using their specific filters from segment to sector to supply, they can identify the projects and market conditions that best match their risk tolerance and performance goals.

Hotel Investment Today gathered industry experts to walk investors through the case-study mechanics of optimizing submarket ROI in a webinar exploring: “Inside “LA’s Momentum: A region-by-region look at what’s next.”

Offering a detailed look at submarket demand generators, available asset inventory and hotel needs in each region were: Sonya Kay Blake, president & CEO, The Valley Economic Alliance; Adam Burke, president and CEO, Los Angeles Tourism and Convention Board (LA Tourism); Jason Foster, president & Chief Executive Officer, Destination Crenshaw; Tajh Henderson, executive director, GatewayLA Business Improvement District; Nella McOsker, president & CEO, Central City Association of Los Angeles; Kathleen Rawson, president & CEO, The Hollywood Partnership and Karin Wallerstein, CEO, Venice Chamber of Commerce.

Mary Scoviak, custom and design content director, Hotel Investment Today by Northstar, moderated the April 8, 2026, live broadcast, which is now available on demand. LA Tourism was the topic sponsor. (The company collaborated on the webinar planning but had no influence over the editorial content.)

How LA is fueling its submarket boom

Burke opened the live, hour-long discussion with an overview of how intra-regional demand expansion paired with citywide infrastructural initiatives supports a shop-local development philosophy.

“Investors need to understand you can't define Los Angeles as any singular thing. It [Los Angeles] is not a monolith. It's an incredibly diverse community, and all six of our dynamic regions have compelling reasons for developers to give LA a serious look,” he said.

Before taking a deep dive into the economic upside of these distinct business communities, Burke highlighted the changes in transit, MICE business and upcoming world-class sports and entertainment events that will provide long-term demand that supports local growth.

Modernization of Los Angeles International Airport (LAX) and completion of the Metro-connector that will put Downtown Los Angeles (DTLA) just 30 minutes away from LAX, as well as the debut of the Skylink automated people mover and the Metro expansion will facilitate faster transit to destinations throughout the city.

The planned debut of a dedicated in-house transit police force underscores the critical role safety plays in maximizing the ridership on all lines ─ and in the city at large. Burke pointed out that new safety and security initiatives developed through a close working relationship with Jim McDonnell, chief of the Los Angeles Police Department, and the success of Mayor Karen Bass's administration's efforts in reducing street homelessness 17.5% in 24 months are pivotal demand drivers at a time when safety, security and cleanliness are top concerns for group and individual travelers.

Submarkets will get a major boost from a $2.6 billion investment in modernizing and expanding the Los Angeles Convention Center (LACC). “That's a complete game-changer, because smaller events that we traditionally hosted at LACC can now be moved out to all six of the regions. So, that's another demand generator,” said Burke.

New attractions coming to LA and a calendar of world-class sports from this year’s FIFA World Cup matches to the 2028 Olympic and Paralympic Games and entertainment events from The Academy Awards and The Grammy Awards to a four-night BTS tour stop will have tourism benefits not only for their host region(s) but across the metro area, according to Burke.

Here is how these six regions are each leveraging this interconnectivity and their individual market landscapes, and what that means for hotel investors who want to capitalize on on these bespoke opportunities.

Downtown’s upmarkets

LACC’s long-awaited expansion may be DTLA’s headline, but it’s not the only hotel development story in the city center.

“We have seen tremendous residential growth in Downtown Los Angeles. We now have 90,000 residents in our downtown corridor,” McOsker said. In her view, that matters to hotel investors because the investments in public safety, in public space, in parks, “in all the kinds of infrastructure necessary to meet that moment for a residential population,” are also “tremendous assets and opportunities for the potential hotel market of the approximately 18 million annual visitors who come to Downtown each year.”

The array of public transportation improvements is building out DTLA’s central role as a public transit hub. “We’re a one-stop ride away from the farthest reaches of Los Angeles,” she said, making Downtown a convenient base for business and leisure travelers.

Property purchases by the University of Michigan and Arizona State University offer fresh investment options for owners and developers actively expanding their exposure to the higher education market.

“University of Michigan…is recruiting executives for their MBA program from across the country,” she said. “They’re building partnerships right now with hotels in order to welcome those executive MBA students to Downtown Los Angeles.”

The best way to access these opportunities is adaptive reuse. McOsker’s organization is actively working for a citywide adaptive reuse ordinance that enables more commercial-to-housing repurposing. “But, there are certainly components of that policy framework that enable more conversion to hotel development,’ she added.

Hotels wanted

Heading to Westside, the beaches are the well-known draw, but Wallerstein pointed out that the city's accelerating bleisure base is a bright spot for hotel investors.

“Venice is a hub for creative industries, design, wellness, music and the arts. All of them, plus our elevated restaurant scene and activations, are very, very vibrant. This community is also a tech center. Silicon Beach has really seen an uptick in the last decade as a home to Google, Snap inc., and dozens giants, mid-sized companies and startups." she said. “Today, we're at a moment where the right kind of hotel investment can strengthen our economy and support our emerging business sectors.”

Wallerstein stressed that the area is in need of short-term lodging for visiting talent, plus meeting and event spaces to support the cultural programming. “The foot traffic and spending by families, international visitors, people coming to visit [the] UCLA campus is very significant. That creates high demand for boutique, wellness-oriented, experiential hotels,” she said.

“Unfortunately, we just don't have the hotel beds to support this awesome influx of tourists year-round.’” said Wallerstein. For investors interested in filling that gap, the region has potential for both refurbishing and new development.

“Venice is ready. The demand is here. The global spotlight is here. What we need now are hotel partners who understand the coastal zone, who build with intention, who see Venice not just as a postcard or a stopping point, but a long-term economic engine,” Wallerstein said.

Unlatching GatewayLA

In the Century Corridor Henderson echoed other panelists on the importance of upcoming premier events and the impact they already are having on the area.

“Last year in July, we received information from the Los Angeles Sports and Entertainment Commission that we held 22% of the overall rooms contracted by FIFA. It’s probably even more now. So, we know the impact that we're going to see on [Century] boulevard,” said Henderson.

Under that big blip, is a rippling shift in the ambience of the region. A new In-N-Out Burger coming to Century Blvd. and the new Top Golf Swing Suite at the Westin Los Angeles Airport are in the vanguard of lifestyle amenities that are making this area more than flyover country near LAX.

“It's been such an amazing time for the hotels and just seeing the development, especially with all the modernization projects that LAX currently has going on. Keep in mind,” he added, “these projects are supposed to reduce friction. So, You kind of make our area, or the hotels in general, more attractive for the person with the early departure, a layover, a quick stay just because of how seamless and smooth the actual traveler experience is for the traveler and hotelier.”

Henderson noted all the modernization projects are affecting hotels from a surrounding market aspect “because of how the area is supposed to progress in a more-positive way,” he said. “I think there's a lot of opportunity for businesses and developers…It’s just a matter of jumping on it now and getting the ball rolling,” he added.

Heading south

In South LA, Foster suggested investors “go where the change is happening.”

“We have existing places like SoFi [Stadium], Intuit Dome, BMO Stadium. We have legacy venues that are remodeling, like the Forum and California African-American Museum; and we have the coming experiences, like the Lucas Museum, the Expo Park redevelopment, and the little engine that could —Destination Crenshaw,” said Foster.

All these things are happening in South LA, and it's all along the K-Line's expansion. “This is a $2 billion public transportation line that's going to take approximately six million people from one place at LAX up to the Expo Line in Crenshaw,” he said. “So, if…six million people are going to be taking this thing, they're going to need somewhere to stay, right?”

“What we need now is lodging for visitors. And [we] have an area that's actually orienting towards visitors,” said Foster. “Destination Crenshaw is using existing businesses, existing entrepreneurs and actually orienting them toward a different market for themselves. We’re trying to take it to the next level in South LA.”

To attract investors/developers who could be considered pioneers in the area, Foster’s strategy is a simple one: “One thing I'll tell people: Your opportunity is understanding that the number-one visitor to South Los Angeles lives in the Inland Empire. They drive an hour-and-a-half to get here. We want those people to stay overnight. That is our opportunity and that is the critical path that I know our finance people and our investors want to hear. We’ve got a quick turnaround to your profit if you invest in South LA,” said Foster.

Hollywood’s new demand stars

While a mature market, investors should know Hollywood is continuing to evolve, suggested Rawson.

“We're absolutely bursting at the seams with creative content developers who are blending music and podcasting, live events, dance, culture and a mix of creative-use spaces alongside of the traditional studios. “Netflix, for example, has almost 5,000 employees in Hollywood…Almost a quarter of the jobs in our neighborhood are literally in the creative industry. One might have these perceptions that it's all glitz and glamour, but these folks are working and creating things,” said Rawson.

Investment in the area is building, said Rawson, and detailed a few moves: Capitol Records just signed a 25-year lease, Spotify opened a studio, Insomniac purchased the iconic Avalon Theater, Echelon Studios is a new studio development, Netflix put $70 million into the restoration of the historic Egyptian Theater and the W Hollywood just finished a $50 million renovation.

“So, people are doubling down on the neighborhood, which is great news for us,” said Rawson, adding the region hosts more than 34 million visitors annually.

“We have a huge unmet demand for any product that isn't luxury. We really need product that fits all levels of income,” said Rawson, indicating brand offerings — boutique, soft brands — stand a good chance of making it happen. “We have such unique building stock that the conversions are possible,” she said.

Hollywood offers multiple points of entry for hotel investment, she said. “There are hotels that are older, and a lot of those are mom and pops who are looking to retire. Those properties are available. We just had the Palihouse West Hollywood (former Days Inn) open on Sunset Boulevard. The great news is that [the owners] of some of our iconic hotels like the Hollywood Roosevelt have put substantial funds into those assets…There are dozens and dozens of opportunities…It’s just ripe for the picking, really,” said Rawson.

The Valley's green shoots

Citing her North Los Angeles County region of multiple cities such as Burbank, Glendale, San Fernando, Hidden Hills and Calabasas in the San Fernando Valley, Blake noted it’s distinctly diversified. It includes entertainment (Warner Brothers and Walt Disney Company), health care (Cedars-Sinai and Kaiser Permanente), education (California State University, Northridge, a major research university, as well as its 1,700-seat performing arts center, the Soraya) and leisure (Magic Mountain, Universal Studios and Universal City Walk). Additionally, the Sepulveda Basin region will be hosting several games for the LA28 Olympics, including skateboarding and BMX biking.

The Mission San Fernando Rey de España in its namesake city also is a tourist lure, and according to Blake, “The city is very aggressively trying to court hotels.”

“We kind of have something for every kind of segment of the travel market,” said Blake.

Incentives often prove a successful lure to get investors interested in a potential opportunity and while Blake did not detail specific packages, she did suggest there’s “flexibility” in terms of expediting timeframes and other aspects.

“[It’s] interesting when you have these five different cities, you have different approaches to business attraction and hotel development, and some of the smaller cities can sometimes be very nimble,” said Blake. “Some mixed-use type hospitality integrated with retail and housing are items that might be interesting to cities that can come up with some mutually beneficial incentives,” she added.

“We’re a very built-out environment; predominantly infill opportunities would be available,” said Blake. She noted there’s noteworthy activity around boutique/lifestyle hotels and modernized extended-stay formats near studios and “a lot of excitement and interest” in renovation.

Blake said the LA Rams have located their training facility to the area, with plans for one, possibly two, 3,000-seat stadiums, as well as other area plans for retail, office and housing. “There’s nothing like that in the Valley currently. This is going to be [the biggest] game-changer since Universal CityWalk opened,” she said.

As the panelists detailed, LA has a very diversified portfolio, Burke said in conclusion. “We all know we're facing very rapidly changing dynamics in our industry. In a market like Los Angeles, we have the ability to be nimble and as things are shifting, we can shift to different customer segments. Pre-pandemic the high-water mark for visitation in LA was about $31 billion of economic impact from leisure visitation, but there was about $25 billion from professional meetings and events. That should give investors a lot of confidence in the long-term sustainability of their investment,” said Burke.

“We've got the smaller [hotel] footprints that can be more intimate opportunities, be more niche,” said Foster. “But then we've got parcels that are ready for use. We do have all sizes and we can actually fit all needs for investors who come our way.” He added there’s also an “undervalued asset” in South Los Angeles, which is land, including greenfield development sites.

“I think there's going to be a huge first-mover advantage to whoever really recognizes this [overall] opportunity,” said Burke.

As to DTLA, McOsker noted the neighborhood, while dense, still has capacity for development. “While there are cost questions, it's not a matter of space. We continue to absorb and grow our residential population, as an example. And that's absolutely true for our hotel stock as well,” she said.

Blake highlighted transit-oriented development and the associated incentives. This includes Metro coming through Van Nuys Boulevard, the under-construction East San Fernando Valley Light Rail and the Sepulveda Corridor Transit Corridor.

Ultimately, the panelists agreed that while each of their regions were different, they all prioritize welcoming investors/developers interested in long-term holds.

“This is a place to build and grow, and we're seeing it in other industries as they're making real estate investments now, knowing that all of these things are coming together in the future,” said McOsker regarding DTLA.

“There is a huge amount of community spirit in Los Angeles; Hollywood has that times two. We’re looking for people who come in, stay, become part of the community and become entrenched,” said Rawson. “We're going for long-term; I think it's an LA thing. You know, if you want to come, you better stay,” said Foster. “I want people [who] are engaged in investing with our legacy folks, our small businesses and our residents who have the capacity and are willing to do it. We also have a $343 million creative economy. We just need partners that actually come in and make it whole.”

Summing up, Burke said, “There has never been a better time to give LA another look, because at every price point in every product segment, we need additional hotel inventory.”

Stefani C. O’Connor is a journalist based in New York City.

The views and opinions expressed in this content do not necessarily reflect the opinions of Hotel Investment Today by Northstar or Northstar Travel Group and its affiliated companies.