United States -  Tampa - St Petersburg

The Tampa/St. Petersburg market typically benefits from various leisure attractions, such as the beaches along the Gulf Coast, as well as corporate and institutional demand generators. In the early 2000s, market occupancy levels hovered in the low-to-mid 60s, while ADR levels remained suppressed in the $80s as new supply ramped up operations. Between 2008 and 2010, RevPAR levels declined sharply, concurrent with the onset of the Great Recession. ADR growth resumed in 2011 as the lodging market began to recover, and the upward trend continued through 2015. Although occupancy remained relatively stable in 2016, ADR rose because hotel operators shifted to a rate-focused strategy. Tampa's Raymond James Stadium hosted the 2017 College Football Playoff National Championship in January, and Hurricane Irma made landfall in September, causing an influx of demand; as a result, both occupancy and ADR increased in 2017. A record-breaking spring season in 2018 allowed for strong ADR growth; however, the toxic algae bloom known as "red tide" invaded St. Petersburg-area beaches in the fall of 2018, causing a softening in overall occupancy for the year. In 2019, occupancy and ADR levels increased modestly, supported by a robust economy and significant commercial activity throughout Tampa.

In March 2020, the spread of COVID-19 resulted in mass cancellations, and RevPAR levels declined sharply. In April, Governor Ron DeSantis mandated a "Safer at Home" order, along with most of the United States, resulting in an 80% decline in RevPAR from the level achieved in April 2019. Since Florida began reopening the economy in phases in May 2020, leisure demand has gradually increased. Tampa had the highest occupancy in the nation during 2020, largely attributed to demand from leisure travelers from neighboring states seeking less-restrictive destinations. In January and February of 2021, RevPAR levels declined sharply from the same months in the prior year, which reflected pre-pandemic travel patterns. A distinct shift occurred in March 2021, as occupancy levels quickly rebounded near levels achieved in 2019, due primarily to strong leisure demand. Moreover, since April 2021, ADR levels have exceeded 2019 levels given the temporary shift in segmentation. As a result, ADR and RevPAR surpassed historical levels in 2021. The near-term outlook remains positive, despite an increase of COVID-related cases associated with variants of the virus, as the popularity of Tampa with leisure travelers and the commercial developments currently underway should further contribute to a strong recovery.

* 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:

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: More than -10%

For more information, please contact:

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