Orlando Hospitality Market Report

Elevated construction provides guests with more options. Orlando’s International Drive and Lake Buena Vista areas ranked second and third in U.S. hotel bookings in 2022. That demand sparked a construction wave with nearly 3,950 rooms under construction metrowide as of June, half of which were in these high-demand areas. However, increased competition and recent declines in theme park attendance — Universal Studios down 9.3 percent and Disney World up just 3.4 percent in 2023 — are likely to reduce local hotel bookings in the near term. In the yearlong period ended in June, occupancy fell in six of Orlando’s seven submarkets, and the overall rate is expected to drop to 71.7 percent by this year. Nevertheless, the opening of Universal’s Epic Universe in 2025, which will nearly double the resort’s size, should serve as a future demand driver.