Florida Hospitality Investment Forecast
Hotel Fundamentals Buoyed by Record Levels of Domestic Visitation in Florida
Leisure travel bolsters room demand. The recovery of Florida's hotel sector is outpacing most of the nation, with statewide ADR and RevPAR surpassing pre-pandemic levels in each month since May 2021. Annual occupancy surged over 1,700 basis points over the past year, as less-stringent COVID-19 restrictions coupled with the region's beaches and theme parks drew record levels of domestic visitors to Florida. Furthermore, Port Tampa Bay, Port Everglades, Port Miami and Port Canaveral all reopened their cruise ship ports late last year. This combined with numerous expansions to Walt Disney World has the region positioned for another year of elevated tourism and improved hotel performance. Although roughly 10,200 rooms are slated for completion this year, room demand is projected to outpace deliveries, and revenue metrics are anticipated to reach record highs. However, many hotels have had to cap occupancy due to labor shortages while international tourism is still recovering. It is unlikely annual occupancy will surpass the 2019 rate until foreign travel volume and leisure and hospitality employment normalize.