Sarasota, Fort Myers, and Naples Hospitality Market Report
Sarasota
Market Overview
Sarasota is notable for being home to a smaller number of hotels. It has 193 properties that total up to 13,000 rooms. The majority of hotels here are categorized as Luxury or Upper Upscale, which is above typical hotel markets in the U.S.
Market Performance
Occupancy has averaged at 67.4% here over the past 12 months, which is above the national average of 62.8%. The 12-month RevPAR rate decreased by 9.1% as of June, bringing it to $131.31. Yet, the ADR rate remains in good standing at the current rate of $175.84.
Construction and Sales
There are 500 rooms under construction as of Q324. The increase in rooms underway is in line with previous developments, as about 560 rooms were delivered throughout the past three years. Most properties being delivered are Upper Midscale, with the Luxury segment behind it.
There have only been three sales throughout the past 12 months. Two properties traded in January, with both sales adding up to $8.9 million.
Fort Myers
Market Overview
Similar to Sarasota, Fort Myers is also known for its smaller hotel properties. There are 13,000 rooms here, with a total of 144 properties. Employment in office-using sectors has stood out here over the past 10 years, with an uptick of 20,000 office-using roles. This trend could lead to an increase in corporate travel to the metro.
Market Performance
Monthly occupancy has averaged at 67.1% here over the past 12 months. The Upscale and Upper Midscale segment has noted the highest occupancy rate at 72.8% during the same period. Meanwhile, RevPAR has decreased by 9.5% over the past year. This brought the 12-month RevPAR metric to $112.11.
Construction and Sales
The 520 rooms under construction are a continuation of the recent supply uptick in Fort Myers. The largest property is scheduled for completion in September of this year. Once complete, TownePlace Suites by Marriott will add 130 rooms to the Upper Midscale segment.
There have been seven sales throughout the past 12 months here. The most notable sale occurred in March, with an Upscale property trading for $27.6 million.
Naples
Market Overview
Naples boasts a total of more than 40% of its rooms falling into the Luxury or Upper Upscale segment. Fewer than five markets in the U.S. fall into this category. Yet, there are only a total of 71 properties here, which are made up of 7,700 rooms.
Market Performance
The 12-month occupancy rate in Naples is higher than the national average of 62.8%. Occupancy over the past 12 months stood at 65.4%, with the highest occupancy rate in the Luxury and Upper Upscale segment. Similarly, RevPAR has also been ahead of the national metric. It climbed at a rate of 13.1% year-over-year, which is a much larger increase than the 1.5% jump seen nationally.
Construction and Sales
Construction in Naples will see a 12.9% increase as 1,000 rooms are underway. This is a significant change to the market as inventory has decreased over the past three years with demolition outpacing construction.
Matching the pace of low sales activity nationally, there has only been one sale throughout the past 12 months. A 153-room Quality Inn traded for $11.3 million in January.
