Orlando Hospitality Market Report

Full-service hotels outperform. Declines in market occupancy have slowed in each of the past two years, setting the stage for 2026 to mark the first year-over-year gain since 2022. While tourist tax collections in 2025 outpaced that of the year prior, annual hotel demand declined modestly. This, in part, reflects higher per-visitor spending, further evidenced by relative outperformance at higher-cost, full-service establishments compared to the other levels. While the segment maintained demand-side momentum heading into 2026, overall market performance in the coming year will hinge on improving bookings at limited- and select-service hotels. Those service levels are affected by lower available discretionary spending by middle- to lower-income households. Meanwhile, phased renovations and the approved Grand Concourse expansion at the Orange County Convention Center are expected to position the tourist corridor for stronger group demand over the long term. However, construction activity through its anticipated 2029 completion could create modest near-term scheduling and operational headwinds that will likely impact nearby hotel demand.