HVS Report: Colorado Springs Resort Market: Restoration, Headwinds, and Progress Potential

Colorado Springs has lengthy stood as certainly one of Colorado’s hottest drive-to leisure locations in the course of the peak summer season months. Authorities entities and associated contract enterprise have additionally supported sturdy lodging dynamics. Whereas disruptions inside the authorities section over the previous yr have resulted in uncertainty for the close to time period, the long-term outlook stays optimistic.

Following the impression of the COVID-19 pandemic, the Colorado Springs market skilled a sturdy restoration as certainly one of Colorado’s hottest drive-to leisure locations. Nonetheless, given the normalization of leisure journey and an inflow of latest provide all through the final two years, in addition to decreased authorities journey in 2025, occupancy has modestly declined. In the meantime, charges have struggled to proceed their optimistic development since 2023 as a consequence of a 2024/25 lower within the authorities per-diem price of $10 in the course of the peak summer season months (June by way of August) and $5 throughout the remainder of the yr.

Extra just lately, the announcement of the relocation of the U.S. House Command headquarters in September 2025 from Colorado Springs to Huntsville, Alabama, in addition to the federal government shutdown that began October 1, 2025, created some hesitation for resort operators and buyers concerning the way forward for the Colorado Springs lodging trade. Citywide occasions in 2025, together with the U.S. Senior Open at Broadmoor Golf Membership and U.S. Synchronized Skating Championships, helped offset a portion of government-related demand declines; nevertheless, these occasions is not going to return in 2026.

Regardless of the damaging elements, Colorado Springs’ financial system has continued to broaden, with a give attention to sustained tourism development and the revitalization of Downtown Colorado Springs. As such, the town is predicted to expertise demand development over the following few years, supported by new resort openings, the completion of redevelopment initiatives within the downtown space, just lately accomplished tourism sights, and the anticipated restoration of the federal government section.

Downtown Submarket Efficiency Overview

Regardless of the current developments of slower authorities journey, the downtown submarket remained comparatively secure in 2025. Occupancy registered within the mid-60s, as return-to-office developments, citywide occasions, and elevated business journey have offset the drop in authorities demand. Furthermore, native hoteliers have opted to extend reliance on third-party reserving channels to counterbalance lowered authorities demand ranges.

Given the rise in lower-rated reserving channels, in addition to decrease per-diem charges, ADR within the downtown submarket declined by roughly 1% in 2025; nevertheless, we word that the impression of the decrease per-diem price on this submarket was restricted. Downtown Colorado Springs is much less reliant on authorities demand when in comparison with the close by submarkets of northern and southern Colorado Springs, which primarily supply limited-service lodging choices that function at cheaper price factors. In consequence, RevPAR ranges for Downtown have remained nearly unchanged, remaining above these achieved previous to the pandemic.

Whereas ADR development is predicted to stay modest within the close to time period as a result of impression of lower-rated leisure journey and secure per-diem charges for 2025/26, demand development ought to proceed its optimistic development, with occupancy ranges within the submarket anticipated to succeed in the excessive 60s inside the subsequent three years, close to the degrees achieved from 2017 to 2019.

New Resort Provide Pipeline

New provide has had a major affect on market occupancy ranges over the previous 5 years, as Colorado Springs was certainly one of Colorado’s most energetic lodging growth areas. Whereas the airport and northern Colorado Springs submarkets are at present experiencing the most important quantity of latest provide, Downtown has additionally turned a focus for future developments and investor curiosity over the previous a number of years. Provide on this submarket grew by roughly 55% from 2021 to 2022 with the openings of the Hyatt Place Downtown (2021) and dual-branded SpringHill Suites by Marriott and Aspect Downtown (2022).

Though the tempo of resort growth has slowed lately, a variety of initiatives have opened since mid-year 2024 or are in varied phases of growth inside the better market space.

The first focus of latest resort provide is centralized close to the airport, largely attributed to the airport surpassing 1,000,000 passengers for the primary time in 2022. Furthermore, in September 2023, the airport introduced a brand new grasp plan that features a new management tower and an extra terminal that can double the variety of gates from 12 to 24. The $36-million initiative, generally known as “ElevateCOS,” additionally goals to remodel the airport’s concourse, introduce new eating and retail selections, and modernize outdated infrastructure. As of year-end 2025, three of the seven deliberate phases had been accomplished, with completion of all phases anticipated in Might 2026. This mission ought to lead to greater passenger quantity, because the airport continues to be positioned as a lovely various to Denver Worldwide Airport for southern Colorado residents.

Colorado Springs’ Tourism Enhancements

In an effort to advertise tourism development, the Metropolis of Colorado Springs has invested considerably in native sights over the previous a number of years. Main vacationer developments have included the next initiatives:

Weidner Discipline, which opened in April 2024, is the house to the Colorado Springs Switchbacks FC skilled soccer staff. The 8,000-seat stadium additionally hosts group occasions, live shows, and collegiate and high-school sporting tournaments.
On August 9, 2024, the Ford Amphitheater opened in northern Colorado Springs. The $90-million open-air venue has a capability of 8,000 individuals and is predicted to host a minimal of 35 live shows and occasions per yr, producing an estimated $102 million in annual financial impression, based on the Metropolis of Colorado Springs. Along with live shows, the venue hosts comedy exhibits, group occasions, and personal capabilities.
One of the anticipated vacationer sights and leisure attracts is the brand new Hosmer Customer Heart and adjoining Resort Polaris positioned on the U.S. Air Pressure Academy grounds. Resort Polaris, which opened in November 2024, options 375 guestrooms, a full-service spa, a number of meals and beverage institutions, and three flight simulators. The $41-million Hosmer Customer Heart, which is nearing completion, will function an official Colorado Welcome Heart. The ability may also incorporate state-of-the-art expertise and experiential displays, together with an exhibit illustrating a day within the lifetime of an Air Pressure cadet. Each the Resort Polaris and Hosmer Customer Heart are half of a bigger mixed-use growth generally known as TrueNorth Commons, which may also characteristic 200,000 sq. ft of business house and 30,000 sq. ft of restaurant and retail house.

On account of the Metropolis’s efforts, tourism visitation elevated by 2.7% in 2024, whereas spending rose by 5.2% throughout the identical interval, based on Go to Colorado Springs. As well as, native resort operators reported that the expansion in tourism during the last 5 years has helped offset a portion of the occupancy disruptions brought on by lagging restoration inside the business section, decreased authorities journey, and the impression of latest provide.

Wanting Ahead

Budgetary cuts to authorities journey and a lower in per-diem charges have had a damaging impact on lodging metrics all through Colorado Springs over the previous yr, and new provide is predicted to outpace demand development over the following yr. Nonetheless, the long-term outlook is optimistic. Though ADR will increase are anticipated to be restricted, continued growth and funding within the native financial system, significantly inside the tourism trade, ought to enable for long term occupancy and ADR restoration. Furthermore, regardless of the deliberate relocation of the U.S. House Command headquarters, Colorado Springs is predicted to stay a outstanding location for presidency protection entities and contractors, in addition to aerospace firms, which is able to proceed to function a secure supply of demand for space inns.

At HVS, we flip knowledge into highly effective insights that drive your success. Our distinctive methodology, which entails conducting main interviews inside native markets, permits us to assemble real-time insights and present knowledge. This strategy ensures an in-depth understanding of every market we function in, providing you with a definite aggressive edge. For complete details about the Colorado Springs market or for help in making funding selections that align together with your particular objectives and danger tolerance, we invite you to succeed in out to Ryan Mark, your HVS Colorado hospitality skilled.

About Ryan Mark

Ryan Mark, a Senior Vice President with HVS Denver, offers resort advisory and valuation providers for inns, resorts, and mixed-use hospitality belongings all through the Rocky Mountain area and throughout the nation. He has performed a whole lot of resort value determinations, market research, portfolio valuations, and feasibility research. Ryan additionally offers consulting for present and ground-up growth of resort-residential properties, and he provides property tax attraction valuation advisory providers. His experience spans a variety of resort property varieties, from small motels to full-service luxurious resorts. Ryan graduated with a BS in Restaurant and Resort Administration from Colorado State College. Contact Ryan at (303) 881-4762 or [email protected].