Fort Lauderdale Hospitality Market Report

Consumer preferences adjust while occupancy stabilizes. Fort Lauderdale’s annual occupancy rate was the sixth highest among major U.S. markets last year and, despite stalled momentum, will remain within the top-10 this year. Trends, however, are set to vary across classes. In 2023, Spirit Airlines increased its local operations by nearly 25 percent, lifting its share of air traffic at the international airport to 30 percent. Additional routes by the budget airline should serve cost-sensitive travelers well, likely aiding demand for limited-service accommodations, particularly as discretionary spending tempers amid recent inflationary pressures. This is reflective of the segment’s anticipated 90-basis-point increase in occupancy, exceeding all other service segments’ improvements, and bringing the 2024 rate closer to its pre-pandemic point than alternative service types. Luxury and upper upscale fundamentals are also gaining headway, as RevPAR growth within the full-service segment is set to near 3 percent, exceeding the other two service levels this year. Still, segment occupancy is in a state of recovery, standing 220 basis points below its 2019 measure.