As forecasted, Phoenix’s hotel industry ranked second all-time among Super Bowl host markets in ADR and RevPAR during the weekend of the big game, according to STR.
While the market’s rankings were as forecasted, the values that produced that status were different than projected. ADR ($538) and RevPAR ($468) beat forecasts, while occupancy (86.9%) was lower. When adjusting for inflation (real), Phoenix’s ADR and RevPAR were easily all-time highs for the market. The real RevPAR value dipped to third among Super Bowl hosts behind Miami (2020) and New Orleans (2013).
This was the fourth time that Phoenix hosted the Super Bowl. Miami is the only other city that has hosted four times. When comparing 2023 hotel performance to 2008 and 2015, nominal and inflation-adjusted ADR and RevPAR significantly outperformed previous host years. This year, hotel occupancy was 86.9%, which was lower than 2015 (93.6%), but above 2008 (83.2%). However, this year generated 5,200 more occupied hotel rooms than 2015. Hotel inventory increased nearly 7,000 rooms (+10.9%) during the same period, which accounts for the lower occupancy.
Almost every submarket experienced higher than $100 RevPAR premiums, but Scottsdale achieved the highest premium, followed by Phoenix Central (downtown) and Phoenix West, which houses State Farm Stadium. Scottsdale represents nearly 70% of the luxury class hotel room inventory in the market, and with Super Bowl average ticket prices around $8,000, it appears that many of the attendees also opted for higher-end accommodations.
As previously mentioned, Phoenix drops a spot in real RevPAR when adjusting for inflation. New Orleans (2013) achieved higher occupancy during its host year, which was also bolstered by Mardi Gras festivities occurring in the same month. However, Phoenix sold 73,000-plus more hotel rooms over the three-day weekend than New Orleans. Phoenix had nearly two-thirds more hotel room inventory in 2023 than New Orleans had in 2013, thus the difference in occupancy.