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Market Report

Tampa-St. Petersburg Hospitality
Market Report

2024 Investment Forecast

Slowing Construction Limits New Competition;
Investors Gravitate Toward Economy Options

Convention activity boosts room demand in 2024. While occupancy in Tampa-St. Petersburg will hold just below its 2019 rate this year, the metro will be the only major Southeast market to come within 150 basis points of its pre-pandemic mark. This comparatively strong recovery stems from slowing supply additions, after just 6,000 rooms were added in the last half-decade. Occupancy will also be aided, both this year and in the long run, by the late 2023 completion of the Tampa Convention Center renovation project, which allows the facility to host a record 39 large city-wide conventions and conferences involving multiple venues in 2024. The facility’s proximity to East Tampa, which holds a lower ADR than the Tampa CBD-Airport Area, will boost the submarket’s occupancy rate above the half-decade average preceding 2020. Similarly, North Tampa-Busch Gardens has an ADR lower than the overall metro rate, and benefits from its proximity to downtown and the University of South Florida. Areas with higher overnight rates like Clearwater and St. Petersburg will face headwinds from budget-oriented travelers looking for lower-cost lodging, but unparalleled beach access here still supports demand.
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