Hotels in Sedona are facing a challenging summer, with occupancy rates down by 3% and revenue dropping by 7.4% in July, according to the latest data presented at the Tourism Advisory Board meeting. This decline is attributed in part to the absence of Poco Diablo from the reporting, which accounts for approximately 4-5% of the total hotel supply in the area.

In contrast, short-term rentals are experiencing a surge, indicating a shift in visitor preferences. While the hotel market struggles, the short-term rental sector continues to thrive, suggesting that travelers are opting for alternative accommodations during their stay in Sedona.

The ongoing trend highlights the evolving landscape of tourism in the region, prompting discussions among board members about strategies to enhance hotel performance and adapt to changing visitor behaviors. As the summer season progresses, stakeholders are keenly observing these developments to better position Sedona as a premier travel destination.