Market of the Month - Boise, ID

In November of 2024, we celebrated the grand opening of the Residence Inn by Marriott Eagle Boise. The Boise metro area has seen a large influx of people relocating to the area over the past several years, and Forbes named Boise one of the fastest-growing cities in the United States in 2024. As the area grows, we look forward to expanding further into the market.

Boise, nicknamed “The City of Trees,” is the capital and most populated city in Idaho. Boise has grown in popularity given its low cost of living, urban downtown, lively arts scene, and ?numerous outdoor activities. Outdoor activities, such as skiing, fishing, hiking, and biking are a draw for locals and tourists alike. The city also hosts several annual events that bring in visitors, such as the Spirit of Boise Balloon Classic and the Treefort Music Fest. Furthermore, the Jaialdi Basque Festival will return in 2025. This festival typically takes place every five years but has not been held since 2015 due to COVID in 2020. In 2015, the festival had a $4.3 million economic impact on the state.

Tech is the leading growth sector for the area; in fact, Boise’s tech market is growing faster than the national average. Major tech companies in Boise include Meta, DJI, Oppo, and Micron. Micron is Idaho’s largest for-profit employer, with 5,400 employees in the Boise area. In September 2022, Micron broke ground on the site of its $15 billion government-subsidized fab (semiconductor-fabrication factory); complete construction is expected to be completed in late 2025, with production slated to start in 2026. The fab is estimated to create 2,000 jobs at the company itself, plus 15,000 indirect jobs related to services and support the facility will require. Additionally, Meta is investing roughly $800 million into its new data center in nearby Kuna.

Year-to-Date Trends: The Boise market ended the year relatively flat, with a slight increase in ADR and a small decline in occupancy, leading to a -0.4% decline in RevPAR. Despite the stability in the market, CoStar is forecasting steady growth in the next five years, which is assumed to be supported by the overall growth in the area.

New Supply: According to CoStar, three properties (400 keys) are under construction in Boise, accounting for 4.2% of its existing inventory. This includes two extended-stay hotels and a select-service hotel. In addition to the Residence Inn by Marriott Eagle Boise, two other hotels opened in the market in 2024, the Hotel Renegade and Everhome Suites Nampa Boise.

Transactions: Given the challenging capital market environment and conditions in the debt markets, sales continue to lag behind historical data. In the past 12 months, three hotels have transacted, all within the extended-stay segment.

Given all the growth in the area, particularly within the tech sector, we have an optimistic outlook on Boise. Extended-stay has made up the majority of new room nights over the last year and will continue to be the biggest influx in rooms in 2025. In addition to residential growth, the hospitals and universities in the area are expanding their facilities, which supports the extended-stay sector. We look forward to ramping up the Residence Inn by Marriott Eagle Boise this year.