Kansas City Hospitality Market Report

12 Mo Occupancy: 60.7% | 12 Mo ADR: $124.64

Overview
Kansas City's hospitality market continues to exhibit resilience with steady performance metrics despite a global backdrop of economic uncertainty and shifting travel patterns. As of early 2024, the market dynamics are influenced by both ongoing developments in room supply and varied traveler demographics, including midweek business visitors and weekend leisure seekers.

Performance Indicators

Average Daily Rate (ADR): Achieved $127, maintaining a strong price point for the area.

Revenue Per Available Room (RevPAR): Stood at $79, with a slight deceleration noted since Q2 2023, primarily due to normalization post the travel surge in 2022 and early 2023. March witnessed a modest RevPAR decrease of 0.2% YoY.

Occupancy Trends

Occupancy levels have been recovering slower than anticipated, with February 2024 occupancy recorded at 62.4%, still striving to reach the pre-pandemic highs. The influx of group travel, particularly for conferences and conventions, has been a significant demand driver.

Supply Dynamics

The city is seeing an expansion in hotel room availability with more than 1,100 rooms currently under construction and an additional 1,500 in the final planning stages, set to be delivered in 2025 and 2026. This increase could challenge occupancy rates which just reached 55% in February 2024.
Investment Climate

Conclusion
Despite current challenges, the Kansas City hospitality sector remains a vibrant market with potential for strategic investment, especially as it adapts to new economic conditions and traveler behaviors.