Is Nevada Still a Good Market for Hotel Investments?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 20
- 2 min read
Nevada’s hotel investment market continues to thrive in 2025, driven by its robust tourism economy, limited new hotel supply, and favorable investment conditions. With nearly $100 billion in statewide economic activity generated by tourism and hospitality, the state remains a top destination for hotel investors.
Las Vegas, Reno, and Henderson lead the charge, offering high occupancy rates, strong RevPAR (Revenue Per Available Room), and consistent demand from both leisure and business travelers.
Key Reasons Nevada Is Still a Prime Hotel Investment Market
1. Strong Tourism and Economic Fundamentals
Nevada’s tourism industry supports over 437,000 jobs and contributes 34% of the state’s general fund revenue. With major events, conventions, and entertainment venues driving year-round travel, hotel properties enjoy steady demand.
2. High RevPAR Growth in Las Vegas
Las Vegas posted a 44.6% RevPAR increase in early 2025, with ADR (Average Daily Rate) climbing to $223 and RevPAR reaching $188.76. This surge reflects strong group and business travel, making full-service hotels especially attractive.
3. Limited New Supply and High Demand
With fewer new hotel developments and restrictions on short-term rentals, existing properties benefit from enhanced pricing power and occupancy rates.
4. Investor Confidence Is High
According to CBRE’s 2025 Hotel Investor Intentions Survey, 94% of investors plan to maintain or increase their hotel investments this year. Value-add and resort assets are especially favored, with urban locations like Las Vegas and Reno leading the way.
Insurance Considerations for Nevada Hotel Owners
Owning a hotel in Nevada comes with unique risks—from property damage and liability to business interruption and employee-related claims. That’s where Wexford Insurance steps in.
We offer:
Tailored coverage for hotels and motels of all sizes
Protection against natural disasters, including fire and flood
Liability coverage for guest injuries and property damage
Business interruption insurance to safeguard revenue during downtime
Whether you own a boutique hotel in Reno or a resort property on the Las Vegas Strip, Wexford Insurance helps you protect your investment and operate with confidence.
Final Thoughts
Nevada remains a top-tier market for hotel investments in 2025. With strong tourism, rising RevPAR, and investor optimism, cities like Las Vegas, Reno, and Henderson offer excellent opportunities for both new and seasoned hotel owners. As you expand your portfolio, Wexford Insurance is here to provide the coverage you need to protect your property and maximize returns. Contact now!
FAQs
1. Is Las Vegas still profitable for hotel investments?
Yes. Las Vegas posted a 44.6% RevPAR increase in 2025, making it one of the most lucrative hotel markets in the U.S.
2. What types of hotels are performing best in Nevada?
Full-service and upscale hotels are seeing the highest returns, especially in urban and resort areas.
3. How can I insure my hotel property in Nevada?
Wexford Insurance offers customized policies for hotels and motels, including property, liability, and business interruption coverage.
