Recent and Projected Hotel Performance
The Norfolk-Virginia Beach MSA comprises several cities aside from Norfolk and Virginia Beach, including Chesapeake, Suffolk, Newport News, Hampton, Portsmouth, and Williamsburg. The region’s economy revolves around the federal government, the military, the aerospace industry, and the transportation, construction, and healthcare sectors.
Norfolk-Virginia Beach MSA vs. Top 25 U.S. Markets
Historically, this MSA has performed roughly 50% below the top 25 U.S. markets in RevPAR. However, in 2020 and 2021, the market was able to outperform many other top 25 markets and closed the gap substantially in RevPAR performance, as illustrated on the table below. While tourism has always been a cornerstone of the market, the COVID-19 pandemic highlighted the strength of this industry for Norfolk-Virginia Beach, bolstered by government and military demand.