Jacksonville Hospitality Market Report

Delivery slate initiates downward pressure. Like many other Sun Belt metros, Jacksonville’s hotel sector recovered quickly from the pandemic shock, with room bookings exceeding the pre-pandemic count in each of the past two years. The metro’s warm coastal climate and relative affordability compared to other Florida locales helped place it among the top five markets nationally in occupancy and RevPAR recovery since the onset of the health crisis. Improved conditions and elevated tourism levels have sparked a notable amount of development, however, with total supply set to expand by 3.2 percent in 2023. This growth places pressure on existing hotels at a time when economic headwinds and slowing consumer spending may reduce visitor volume. Stretching from Fernandina Beach to Marineland, the Jacksonville Beaches submarket stands to be most impacted by these dynamics, with annual occupancy expected to decline here by more than 300 basis points.