Key Market Indicators: Occupancy and Rate Trends

Denver’s vacation rental market is showing remarkable strength in 2023, with key metrics outperforming both regional and national averages:

  • Average occupancy rates have reached 73% citywide, a 12% increase year-over-year
  • Average daily rates (ADR) have increased by 18% compared to 2022, ranging from $90-$1,500 depending on property type and location
  • Revenue per available room (RevPAR) has grown by 24%, reflecting both higher occupancy and rates
  • Average length of stay has extended to 4.2 nights, up from 3.6 nights in 2022

These performance indicators suggest a maturing market that still maintains significant growth potential, particularly for professionally managed properties that can capitalize on sophisticated pricing strategies and operational efficiencies.

Neighborhood Performance Variations

Denver’s diverse neighborhoods are showing distinct performance patterns, creating opportunities for targeted investment strategies:

  • Downtown/LoDo: Strong business travel recovery has pushed weekday occupancy to 82%, with ADRs averaging $195-$350 for modern units
  • RiNo/Five Points: Experiencing the fastest growth in both rates (26% YoY) and occupancy (15% YoY), driven by cultural attractions and dining
  • Cherry Creek: Commanding premium rates ($250-$450) with steady 70% occupancy, attracting luxury travelers
  • Highlands/Berkeley: Family-friendly areas seeing extended average stays (5.3 nights) with stable rates of $180-$300
  • Foothills Communities: Properties in Golden, Evergreen, and Morrison are seeing extraordinary demand growth (35% YoY) with premium rates for homes with mountain views or outdoor amenities

Evolving Guest Demographics

Understanding shifting guest demographics helps property owners tailor their offerings effectively:

  • Remote work travelers now account for 28% of Denver bookings, seeking stays of 7+ days with dedicated workspace and fast Wi-Fi
  • Outdoor enthusiasts represent 32% of guests, prioritizing proximity to mountain activities and storage for gear
  • Family travelers comprise 25% of bookings, favoring multi-bedroom units with kid-friendly amenities
  • Business travelers make up 15% of the market, focusing on downtown locations with convenient access to corporate centers

Regulatory Environment Updates

Denver’s regulatory landscape continues to evolve, with several important developments:

  • The city has increased enforcement of the primary residence requirement within Denver proper, with compliance checks becoming more frequent
  • Surrounding communities like Golden and Morrison have implemented their own short-term rental regulations, generally more permissive for investment properties
  • Tax collection requirements remain stringent, with the city auditing platforms to ensure proper remittance
  • New noise ordinance enforcement is affecting properties with outdoor amenities, requiring careful guest management

Technology and Amenity Expectations

Guest expectations continue to evolve, with several amenities moving from “nice-to-have” to “essential” status:

  • High-speed internet (100+ Mbps) is now the #1 amenity guests filter for when booking
  • Contactless check-in via smart locks has become standard, with 92% of top-performing properties offering this feature
  • Dedicated workspace significantly impacts booking decisions for the growing remote work segment
  • Outdoor living spaces command premium rates, with fire pits and comfortable seating areas driving higher occupancy
  • Smart home features like connected thermostats, lighting, and entertainment systems increasingly influence guest satisfaction