Utah Hospitality Market Report
Utah Market Overview
Utah is a popular tourist destination known for its stunning natural landscapes and diverse attractions. With its breathtaking national parks, mountains, and iconic red rock formations like those in Zion and Bryce Canyon, Utah offers a wealth of outdoor adventures. The Utah hospitality market is thriving, fueled by the state’s growing popularity as a tourist destination. This report includes the following submarkets: North Salt Lake City/Ogden, Utah Regional, and Cedar City & St George.
North Salt Lake City/Ogden
The North Salt Lake City/Ogden hospitality submarket, while smaller than many U.S. counterparts, offers approximately 3,900 rooms across 46 properties. These hotels tend to be slightly smaller, with an average of 86 rooms per establishment compared to the market-wide average of 119 rooms per property. Despite experiencing a significant occupancy drop during the COVID-19 pandemic, the submarket is now on a positive trajectory.
Market Performance
The North Salt Lake City/Ogden market has a current occupancy rate of 80.8%. ADR has increased 5.7% in the last 12 months to a current rate of $114.01. RevPAR, which is currently $92.07, has also seen significant growth of 6.2%. Currently, there are no ongoing hotel construction projects in this submarket, but significant development has occurred in the past three years, adding around 570 rooms. Sales volume has remained relatively stagnant in most of Utah, with only a few sales occurring per year.
North Salt Lake City/Ogden saw the delivery of 412 hospitality units in the past year.
North Salt Lake City/Ogden by the Numbers Last 12 Months
- Sale Comparables: 3
- Occupancy: 71.4%
- ADR: $107.08
- RevPAR: $76.40
Utah Regional
The Utah Regional hospitality submarket stands out as one of the largest in the U.S., boasting approximately 22,000 rooms spread across roughly 370 properties. Utah Regional has an average of 61 rooms per establishment. Monthly occupancy has averaged 58% over the past 12 months.
Market Performance
The Utah Regional submarket exhibited a steady performance with a 2.3% annual growth rate in RevPAR and a 4.1% annual growth rate in ADR. The submarket’s development scene is active, with 1,248 rooms currently under construction, marking a 5.6% expansion of the existing inventory. Over the past three years, the submarket completed 17 projects, adding approximately 1,400 rooms, contributing significantly to its expansion. In terms of sales activity, Utah Regional remains an active submarket for hotel investments, with six trades occurring in the past year.
The average sale price per room has averaged $147K in the last 12 months, selling at an average cap rate of 12.6%.
Utah Regional by the Numbers Last 12 Months
- Sale Comparables: 10
- Occupancy: 58.0%
- ADR: $199.87
- RevPAR: $115.92
Cedar City & St George
The Cedar City & St George submarket contains around 6,800 hotel rooms spanning across 89 properties. Hotels in this submarket are characterized by their smaller size, with an average of 77 rooms per building, however it is still slightly above the Utah’s average of 77 rooms per building. Over the past 12 months, monthly occupancy in the Cedar City & St George submarket has averaged 63.2%, which is slightly above the market average of 60.3% for the same period.
Market Performance
The average RevPAR in the Cedar City & St George submarket is increasing at an annual rate of 1.1%, and ADR is increasing at an annual rate of 0.1%. Currently, there are three projects containing about 346 rooms underway in the Cedar City & St George submarket. This represents the highest number of rooms under construction in over five years.
Cedar City & St George by the Numbers Last 12 Months
- Sale Comparables: 3
- Occupancy: 63.2%
- ADR: $115.18
- RevPAR: $72.79
