Fort Lauderdale Hospitality Market Report

Cost burdens dampen leisure activity. Inflationary impacts on household budgets continue to weigh heavily on middle- to low-income consumers, making vacation spending less viable. This trend has posed significant challenges for limited-service hotels. The economy segment, in particular, experienced a near 500-basis-point drop in occupancy over the past year ended in June. As a result, areas catering to cost-conscious travelers, such as the Coral Springs-Pompano Beach submarket, have observed occupancy declines that outpace those in other submarkets. Nevertheless, a slowdown in new supply, along with easing price pressures, are expected to improve hotel fundamentals. Additionally, the ongoing expansion of cruise lines at Port Everglades and the growing cultural appeal of nearby Miami may provide tailwinds for local leisure travel.