According to the Midyear 2024 report from Marcus & Millichap, the hospitality market in Orlando is experiencing growth. In 2024 and 2025, over 2,000 new rooms are expected to be completed each year, setting a three-year high for room supply.
While theme park attendance showed mixed trends with a decline of 9.3 percent at Universal Studios and a rise of 3.4 percent at Disney World, hotel bookings were still strong enough to project an occupancy rate of approximately71.7 percent by the end of the year.
Construction activity remains high in popular areas like International Drive and Lake Buena Vista with almost half of the nearly 3,950 rooms currently under construction concentrated there.
The recent launch of Brightline’s high-speed rail service between Miami and Orlando in late-2023 is also expected to support future demand for hotels.
Despite declines in occupancy rates across six out seven submarkets within Orlando’s hospitality sector,Average Daily Rates (ADR) have risen significantly reaching $197.81 – marking it as one Florida metro area that has seen significant growth with ADR increasing by21% since2019.This shows that despite some challenges,the overall outlook forOrlando’shospitality industryis positivewith higher ratesand robust supply contributingto its success.The post on Connect CRE highlights this trendinthe Orlandohospitalitysectorand showcaseshowitcontinuesto thriveeven amidchallengingtimes.
