World-class theme parks, local employers, and the Orange County Convention Center (OCCC) represent the primary sources of demand in the greater Orlando market. From 2004 through 2007, ADR increased given the strong economy. Occupancy declined in 2008 with the onset of the Great Recession. In 2009, both occupancy and ADR dropped; ADR also decreased in 2010 along with the nationwide contraction of leisure travel and reduced discretionary spending. Occupancy began to recover in 2010, and ADR increased in 2011, largely due to the opening of new attractions at the local theme parks. In line with the broader economic recovery, ADR exceeded its previous peak in 2013, and in 2014, occupancy reached its highest point since 2000. RevPAR continued to climb in 2015 and 2016. In 2017, RevPAR increased by 10% over the 2016 level, attributed to the strong economy and non-recurring demand from hurricanes in 2017. In 2018, occupancy declined given weaker demand compared to 2017; however, ADR and RevPAR reached record levels. Although supply steadily increased from 2012 through 2018, the Orlando market sustained strong RevPAR growth from 2011 through 2018, reflecting strong demand. In 2019, ADR increased slightly, while occupancy and RevPAR declined given the entrance of new supply, coupled with weaker demand levels.

While the Orlando market began 2020 strong, the COVID-19 pandemic and its impact on travel have caused a significant RevPAR decline. Travel and visitation slowed significantly in March 2020 at the onset of the COVID-19 pandemic. In April, Governor Ron DeSantis mandated a "Safer at Home" order, which resulted in a record decline in RevPAR. Demand trickled back in as the State of Florida began a phased reopening in May, and this trend generally continued through the end of 2020. In May 2021, Governor DeSantis suspended all local COVID-19 restrictions and mandates on individuals and businesses, allowing theme parks, resorts, and other attractions to reopen without capacity limitations. As a result, ADR levels improved in the latter half of the year, exceeding those attained in 2019, because of the strong levels of higher-rated leisure travelers and Florida's position as a less-restrictive destination. The near-term outlook is best described as cautionary given the increase in COVID-related cases associated with variants of the virus and the subsequent impact on international tourism and convention demand. However, over the longer term, the market is positioned to recover to pre-pandemic levels as a result of a robust tourism industry, a rapidly growing population base, large-scale mixed-use projects in the market, and increasing diversity in the employment base.

* 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.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

Change In Value For Market:

Orlando RevPAR Change

Orlando RevPAR

For more information, please contact:

Donald Stephens Jr. Managing Director Valuation, Market & Feasibility Consulting [email protected] +1 407 405-4363 (w)