Orlando Hospitality Market Report

New supply is optimally positioned, supporting KPI improvement. Occupancy entered the year 710 basis points higher than the trailing five-year mean, marking the fifth-greatest rate improvement in the country. Limited construction has played a major role, as local room inventory grew 3.7 percent over the last four years, the lowest pace among major Southeastern markets. While this dynamic changes in 2024 — as Orlando hosts a delivery volume that nearly matches the combined total of the other four major Florida metros — occupancy will still improve at a pace almost 200 basis points faster than any of this cohort. New supply is placed strategically, with 50 percent of the construction pipeline concentrated along International Drive and Lake Buena Vista. These areas respectively welcomed the second and fourth-most hotel bookings of any submarket in the U.S. last year. Construction is additionally well-timed, as the opening of several new amusement and entertainment venues — headlined by DreamWorks Land and AREA15 — draw even higher levels of visitation than in 2023. New hotels proximate to these attractions should reach above-average occupancy within a short time, helping support a gain in the metro’s overall rate this year.