Kathy Conroy, MAI, John Lancet, MAI, Directors of the HVS Consulting & Valuation practice in Miami, and Donald Stephens, Vice President of the Consulting & Valuation practice in Orlando, presented to a sold out room of more than 100 operators and developers on May 7th at the first annual HVS Central Florida Hotel Market Review (CFHMR).
In his welcome address to the attendees, Stephens shared extremely encouraging data and anecdotes alluding to the explosive development and positive outlook for hospitality and tourism in the Orlando region:
- With a record 62.3 million visitors in 2014, up 5% over 2014, Orlando was the most visited tourist destination in the United States.
- Both RevPAR and ADR increased from 2013-2014 in Orlando, 10.3% and 5.6%, respectively. Supply was up a mere 1% in 2014.
- International Drive and Lake Buena Vista hold most of the existing rooms with 65% of the region’s inventory.
- Although the annual growth rate of room inventory between 2003 to 2013 fell compared to the previous 10 years, Greater Orlando saw seven new hotels open in 2013-2014 and there are an additional 10 properties currently under construction (representing 2.1% of current inventory or 2,649 rooms) that will be delivered to the market in 2015-2016.
- The Orange County Convention Center, and the Central Florida amusement parks, particularly Disney, are the area’s leading demand generators.
- There are numerous attractions scheduled to open through 2016, including the Crayola Experience, Mango’s, Disney Springs, Gator Spot by Gator Land, and a new MLS Soccer Stadium.
- The I-4 Improvement Project, which will span seven years, represents a $2.3 billion investment in road infrastructure in the Orlando area.
“We have now experienced five consecutive years of positive growth in RevPAR in Orlando,” explained Stephens, “And we see the trend of the transformation of theme parks into destination resorts by the addition of themed hotels, second and third gates, and retail, dining and entertainment development.”
Noteworthy Foreign Investment in Florida
In his remarks leading up to the panel discussions, Lancet shared that “foreign capital accounts for most of the purchase transactions in South Florida, particularly from investors in Canada and the Middle Eastern region.”
“And developing is also a serious alternative to buying,” Lancet added. “The majority of hotels under development are in upper midscale and upscale quality tiers as defined by STR [Smith Travel Reports].”
For more information about hospitality development specifically in the Greater Orlando area, contact Don Stephens at firstname.lastname@example.org or at (407) 405-4363.
Leora Halpern Lanz