Hospitality Investing News - Southwest February 2025

The dual blazes rank as Los Angeles’s most destructive on record. The Palisades and Eaton fires have burned at least 12,300 homes, commercial structures, and outbuildings across parts of Pacific Palisades, Malibu, Altadena, and Pasadena, while also taking at least 24 lives. Estimates suggest the fires caused $250 billion to $275 billion in damages — a total that would eclipse the destruction inflicted by Hurricane Helene. Fueled by a combination of extremely dry weather conditions and powerful offshore wind gusts, dubbed Santa Ana winds, the blazes also placed upward of 153,000 people under evacuation orders, forced the closure of many businesses and schools, and prompted the cancellation or rescheduling of major events. As of January 13, the Palisades fire was contained by 14 percent and the Eaton fire by 27 percent. Both fires rank among the most destructive ever to hit California, suggesting the upcoming recovery will be large in scope and have a significant impact on the metro's economy.