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 openings 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 about 10.0% 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 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 caused a significant RevPAR decline. Travel and visitation slowed significantly in March 2020 at the onset of the COVID-19 pandemic. Demand trickled back as the state of Florida began a phased reopening in May, and this trend generally continued through the end of 2020. In May 2021, all local COVID-19 restrictions and mandates were lifted, 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; Florida's position as a less-restrictive destination resulted in strong levels of higher-rated leisure demand. Data from 2022 reflect a continuation of this trend, with RevPAR surpassing the 2018 peak by over 12.0% and occupancy approaching the 2019 level. A return of meeting and group demand, particularly associated with the OCCC, in the first and second quarters of 2023 prompted occupancy growth in the year-to-date period. Rate gains continue to be significant, and key economic indicators, including the booking pace at the OCCC and the construction of Universal Studios' newest theme park, Epic Universe, support a return to pre-pandemic levels in the near term.

* 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)
	Hannah McManus Director Valuation, Market & Feasibility Consulting [email protected] +1 410 967-8879 (w)