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. Tampa’s warm weather and relatively inexpensive cost of living are just a couple of the reasons individuals and companies are relocating to the Tampa Bay area, and continued investment in both the public and private sectors has set the stage for continued growth. These factors, among others, are driving hotel demand and room-night production, leading to an increase in hotel developments. Construction is one of the fastest growing sectors for job growth in this market, with major projects underway such as the $2.6-billion master plan at the Tampa International Airport. In 2019, the airport is slated to begin eight projects related to Phase II. Additionally, Phase I of the multibillion-dollar redevelopment of Tampa’s Water Street, led by Jeff Vinik’s Strategic Property Partners LLC in a partnership with Bill Gates’ Cascade Investment LLC, began in 2017. Phase I of Sparkman Wharf (a recreational lawn surrounded by a dining garden and craft biergarten within the Water Street development) was completed in December 2018. Furthermore, the mixed-use Midtown Tampa development broke ground in the summer of 2018.

Tampa remains among the most cost-efficient places to live and do business in the nation, and the greater MSA contains one of the largest financial-services clusters and overall largest office-space communities in Florida. The government/military sector also continues to be one of the region’s major economic drivers and generates significant demand. Development continues in Downtown Tampa; other areas of growth include the neighborhoods surrounding the University of South Florida, as well as the Westshore business district. Greater Tampa is home to a myriad of scenic beaches, Busch Gardens Tampa Bay, and the Port of Tampa, a launching point for various cruise-ship operators, which all boost leisure demand. The overall demand outlook for Tampa is optimistic due to the abundance of projects occurring throughout the area. 

Most of the current hotel development in the city is concentrated in and around Downtown Tampa and the surrounding submarkets. Nearly 2,000 rooms are in various stages of development. The Westshore/Airport market in South Tampa closely follows, with approximately 1,500 rooms under development, including a dual-branded Aloft and Element hotel in the Midtown Tampa mixed-use complex. A number of limited- and select-service hotels are being built in other areas of Tampa, such as Wesley Chapel and Citrus Park. Additionally, the DoubleTree by Hilton Tampa Airport - Westshore is expected to be converted from a hotel to a transportation hub affiliated with Tampa International Airport; according to city officials, the conversion is anticipated to be completed within the next five to seven years.

Twenty-six hotels totaling over $900 million in transaction volume have sold since January 2018, including such significant assets as the historic Renaissance Vinoy Resort in Saint Petersburg, which sold in an off-market transaction in August 2018 for $184,625,000 ($510,014 per key). Additionally, the Westshore Grand, a Tribute Hotel sold in February 2019 for approximately $71,000,000 ($220,000 per key). Most transactions took place in Tampa proper, with a smaller number of transactions occurring in the outlying areas. With a large influx of supply entering the market and the slowing RevPAR growth, Tampa-area hotel values are forecast to remain stable in 2019.

* 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%

For more information, please contact:

Mallory White, MBA
[email protected]
  • +1 813 956-6900 (w)
John Lancet, MAI
[email protected]
  • +1 305 378-0404 (w)
  • +1 305 502-1167 (m)