Central Florida Hotel Market: Orlando's Transformation
An iconic tourist destination, Orlando is now officially the “Most Visited Tourist Destination in the U.S.” This article discusses Central Florida demand generators as well as growth and trends within its seven unique submarkets.
By Donald C. C. Stephens Jr., Managing Director of HVS Orlando Consulting & Valuation
Following a steady restabilization period since the economic downturn, Orlando’s hotel market is back on top. Through the first half of 2015, all three indices, occupancy, average daily rate (ADR) and revenue per available room (RevPAR) continue to demonstrate significant growth. Comparative to period ending June 2014, Orlando’s current room inventory reflects a mere 1.7% increase, while demand (occupied room nights) increased 5.7%. Orlando’s occupancy rate increased from 76.9% to 80.1%, representing a percentage change of 4.1% over the same six-month period in 2014 - surpassing an occupancy threshold for the first time since 1998, seventeen years ago. Average rate grew 4.4%, and RevPAR ended the first half of the year up 8.7%