Fort Myers Hospitality Market Report
Market Overview
Fort Myers is located on the southwest coast of Florida, known for its waterfront views and tropical climate. Job growth in the market has been rising at a yearly rate of 2.8%, equating to an increase of approximately 8,600 jobs. For hotels situated in and around office-centric areas, the continuation of these trends would be beneficial. Fort Myers is one of the smaller hotel markets in the U.S., comprising approximately 13,000 rooms distributed across 146 properties. The typical hotel in this area encompasses around 89 rooms, aligning closely with the general U.S. average. Over 25% of the market’s rooms are Luxury or Upper Upscale, a percentage found in only one of every five U.S. markets.
Market Performance
Over the last 12 months, the average monthly occupancy in Fort Myers has stood at 70.3%, notably surpassing the national average of 63.0%. Fort Myers experienced a milder initial impact from COVID-19 compared to most areas. During the first wave of the pandemic, annualized occupancy here dropped to 46.1%. Since then, its recovery has outpaced the standard in the hospitality market. As of November 2023, the 12-month RevPAR has declined by 13.8%. This presents a stark contrast to the national scenario, where RevPAR has increased by 5.6% year-over-year (YOY).
By The Numbers | Last 12 Months | Source: CoStar Group
- Occupancy: 70.3%
- ADR: $168.66
- RevPAR: $118.57
- Rooms: 12,019
Construction
The ongoing construction of 620 rooms in the Fort Myers market marks substantial growth, considering the market’s size. This continues a trend of recent development in the market, where seven projects, totaling approximately 940 rooms, were delivered in the past three years. However, this development was partially counteracted by several demolitions, resulting in the removal of around 420 rooms during the same period.
Sales
Over the last 12 months, the market witnessed only five hotel transactions, notably lower than the usual number of deals in a typical year.
