Strip away the scenery, and the Sedona hotel market is a data story, fifteen years of it.
From 2010 to 2025, the Sedona hospitality submarket recorded a leading 5.9% RevPAR CAGR, outperforming many of the most prominent Western leisure markets. The luxury segment within Sedona delivered an even stronger performance, achieving an 8.5% RevPAR CAGR, underscoring the exceptional depth and durability of demand in the high-end tier.
| Market | RevPAR CAGR |
|---|---|
| Sedona (Luxury) | 8.5% |
| Sedona (All) | 5.9% |
| Palm Springs | 5.7% |
| Colorado Ski Areas | 5.5% |
| Utah Ski Area | 5.4% |
| Monterey | 5.3% |
| Phoenix | 5.1% |
| Santa Fe | 5.0% |
| Scottsdale | 4.8% |
| Santa Barbara | 4.7% |
| California Wine Country | 4.7% |
| Tucson | 3.7% |
Resilience when other markets rolled over
Sedona's hospitality market has demonstrated exceptional resilience and sustained growth, defying broader trends seen across comparable drive-to leisure destinations in California and the Southwest. While many leisure markets peaked in 2022 and experienced sharp declines, Sedona's strong fundamentals have supported continued RevPAR expansion, with RevPAR for luxury product up 8.4% YOY as of July 2026.
The Phoenix growth story
Phoenix is Sedona's primary feeder market and is one of the fastest-growing metro economies in the country, with no signs of slowing. Looking ahead, Phoenix is projected to remain near the front of the pack, with a 5-year population CAGR of 1.08% through 2030 and a cumulative gain of 5.51%. Among the ten largest metropolitan statistical areas in the United States, only Houston is projected to grow faster, and three of the ten, Philadelphia, Miami and Chicago, are projected to lose population. That combination of proven and projected growth points to a durable, expanding demand base for Sedona's lodging sector.
| Metro | 5-year CAGR | 5-year cumulative |
|---|---|---|
| Houston | 1.27% | 6.51% |
| Phoenix | 1.08% | 5.51% |
| Atlanta | 0.95% | 4.82% |
| Dallas-Fort Worth | 0.82% | 4.17% |
| Los Angeles | 0.22% | 1.10% |
| Washington, D.C. | 0.10% | 0.50% |
| New York City | 0.06% | 0.30% |
| Philadelphia | -0.05% | -0.25% |
| Miami | -0.06% | -0.28% |
| Chicago | -0.49% | -2.44% |
What it means for owners and lenders
This sustained growth trajectory positions Sedona not only as the top-performing leisure market in the Southwest, but as one of the highest RevPAR growth markets nationally over the past 15 years. For an asset positioned at the top of Sedona's luxury tier, the tailwind is structural: demand keeps compounding into a supply base that regulation holds nearly flat.
Market data per CoStar. All figures are estimates and subject to change.