Q1 2025 Denver Hospitality Market Report

Key Findings

Group travel remains the primary demand driver in Denver’s hospitality sector, accounting for 25% of total room nights.
Corporate travelers in Denver will beneﬁt from the recently completed $233 million expansion of the Colorado Convention Center, which added new state-of-the-art meeting space.
The recent completion of Populus in Denver’s CBD is the ﬁrst carbon-positive hotel in the nation.

Denver Travel

Total Passengers (February 2025): 5,633,766

Denver International Airport served 82.4 million passengers in 2024, an uptick of 5.8% over the prior year. In Colorado Springs, the city’s airport saw a total of 2.3 million passengers in 2024. This is the highest traﬃc level recorded by the airport in over 20 years.

Market Focus: Denver Hospitality

Denver recorded a slowdown in activity for Q1 2025. This decline has mainly been attributed to a decrease in leisure visitors, leading to a drop in the metro’s occupancy. However, group events have aided Denver and boosted both RevPAR and the ADR. Denver’s CBD submarket is recording the greatest metrics for the entire metro, with the ADR at $195.08. The CBD’s positive performance is due to its variety of attractions and proximity to the metro’s convention center.

For the rest of 2025, Denver is expected to see increased activity from corporate and group travel. Visitors can also look forward to an enhanced travel experience with the current $2.4 billion airport renovation project on the way, which is expected to ﬁnalize by the end of 2027.

By the Numbers | Colorado

Occupancy: 59.6%
ADR: $195.11
RevPAR: $116.22
Sales Volume: $167M
Under Construction: 3,280 rooms
Sales Price/Room: $217,983 | Source: CoStar Group | Q1 2025

Under Construction

At the end of Q1 2025, 1,554 rooms were under construction in the Denver metro. Upon completion, the new additions will increase Denver’s room inventory by 2.7%. The largest property underway is the 241-room Virgin Hotel that will deliver in Denver’s CBD. This luxury property is expected to ﬁnalize in 2026, and will be part of Denver’s new Fox Park initiative.

Sales

Transactions for Denver’s hospitality properties decreased from 2024, but sales volume hit a high of $116.4 million in January 2025. This level of sales can be attributed to the transaction of Thompson Denver in January. The luxury property is made up of 216 rooms, and it sold for $95 million. Moving forward, transaction activity may change as 28 hotels with CMBS debt are set to mature in the next couple years.