Orlando Hospitality Market Report
Market Overview
As the city with the second-largest inventory of hotel rooms, Orlando continues to be a travel destination for tourists as visitors as drawn to Orlando’s theme parks. Orlando is expanding as more than 2,000 rooms are scheduled to open in 2024, and more than 3,000 rooms are under construction, expected to open in 2025. Despite slowed anticipated economic growth in early 2024, RevPAR is forecasted to rise about 8% in 2024. ADR is projected to rise about 4%, and strong demand growth is expected to boost occupancy by nearly 4% despite Orlando’s robust hotel pipeline.
Market Performance
The performance metrics for Orlando’s hospitality industry display positive results overall. However, this is a testament to the strong results from Q1 2023, as RevPAR rose 24%. RevPAR posted no growth in Q2 2023 and saw multiple declines of 4% in Q3 2023 and 8% in Q4 2023, respectively. Similar to the performance of RevPAR in 2023, demand rose 11% in Q1 2023, year-over-year, but experienced a decline from April to December 2023. Forecasted for 2024, demand is expected to grow by 4%, but slower economic growth is expected in Q1 2024 for Orlando hospitality. Overall, projections suggest Orlando’s large hotel market will outperform other Florida markets in 2024. Miami is expected to experience approximately 2% growth in RevPAR, while no RevPAR growth is predicted for Tampa in 2024.
By the Numbers
- Occupancy: 72.7%
- ADR: $192.98
- RevPAR: $140.23
- Rooms: 140,041
Construction
In the pipeline, there are 20 hotel properties under construction in Orlando that total 4,472 rooms and consist of 3.2% total inventory. The average hotel under construction consists of 224 rooms. In the upcoming year of 2025, Epic Universe, Universal’s latest theme park set to launch in the summer, will feature a pipeline comprising three hotels with a combined room count of 2,000.
Sales
In 2023, 39 properties changed hands, a decrease from the 61 transactions in 2022, with the estimated sales volume dropping by one-third. Hotel sales in 2023 averaged $13.5 million ($114,000 per key), compared to 2022 averages of $14.5 million ($98,000 per key).
