United States -  Tampa - St Petersburg

Tampa benefits from a diverse and strengthening economic base, anchored by the education, healthcare, and military sectors, as well as professional and financial services. The University of South Florida (USF), which serves nearly 50,000 students, is affiliated with area hospitals such as Tampa General Hospital, All Children's Hospital, H. Lee Moffitt Cancer Center, and Shriners Children's Hospital. In December 2015, USF broke ground on its new Morsani College of Medicine & Heart Institute in the heart of Downtown Tampa as part of a $3-billion redevelopment of Tampa’s Channelside District, led by Jeff Vinik’s Strategic Property Partners LLC in a partnership with Bill Gates’ Cascade Investment LLC. The $153-million project is expected to open in late 2019. One of the largest employers in the Tampa Bay area is the MacDill Air Force Base, which houses the headquarters for U.S. Central Command. Another major economic driver is the Port of Tampa, with an estimated economic impact of $17.2 billion in 2015. Additionally, construction is one of the fastest growing sectors for job growth, with major projects under way, such as the $953-million master plan at the Tampa International Airport that broke ground in November 2014, expected to create or save roughly 9,000 construction jobs.

The outlook for the greater Tampa market is positive, as many area residents look forward to the strengthening of the housing market, the expansion of existing employers, and the relocation of new businesses. Tampa's consistent position among the most cost-efficient places to live and do business in the nation attracts considerable investment to the region. Furthermore, infrastructure projects, coupled with higher levels of leisure travel and convention activity, should further support the economy and lodging trends. Although occupancy remained relatively stable, ADR recorded strong growth, resulting in increased RevPAR levels for 2016; however, compared to 2015 RevPAR growth, the 2016 data illustrate significantly less growth.

Additions to supply in this market have thus far been limited since 2009. In comparison to 2015, the greater Tampa area’s 2016 room inventory reflects a nominal increase of less than 1%. Demand (occupied room nights) increased 2.5% in 2016. New hotel projects on the horizon are expected to ramp up supply growth in the coming years, a large portion of which will be located in Downtown Tampa. Projects such as The Heights mixed-use development, as well as a 400-room luxury hotel planned by Strategic Property Partners LLC, are anticipated to revitalize the district surrounding Downtown Tampa.

Twelve hotels totaling $313 million in transaction volume have sold since January 2016, including such significant assets as the Hilton Tampa Downtown in June 2016 (highest total price paid at $101,000,000, or $193,858 per key), as well as the Westin Tampa Harbour Island in July 2016 (highest per-key price paid at $60,000,000, or $200,669 per key). Most transactions took place in the Tampa-area proper, with several smaller transactions in the outlying areas. With supply entering the market at a moderate pace and the slowing RevPAR growth, Tampa-area hotel values are forecast to increase moderately in 2017.

* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.

Change In Value For Market:

Legend
Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: Less than -10%

Tampa - St Petersburg RevPAR Change

Tampa - St Petersburg RevPAR

Year RevPAR
2006 $63.47
2007 $63.98
2008 $60.47
2009 $51.28
2010 $50.42
2011 $56.62
2012 $62.87
2013 $64.55
2014 $72.16
2015 $82.30
2016 $87.49
2017 (f) $90.57
2018 (f) $93.29
2019 (f) $96.09

For more information, please contact:

John Lancet, MAI
jlancet@hvs.com
  • +1 305 378-0404 (w)
  • +1 305 502-1167 (m)
Kathy Conroy, MAI
kconroy@hvs.com
  • +1 305 378-0404 (w)