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 people and companies are relocating to the Tampa Bay area from far and wide, and continued investment by 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, which is leading to an increase in new hotel developments. This construction is one of the fastest growing sectors for job growth, with major projects underway, such as the $2.6-billion master plan at the Tampa International Airport, which broke ground on Phase II in 2017; the multi-billion-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, which broke ground on Phase I in 2017; and the mixed-use Midtown Tampa development, which is anticipated to break ground in 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 employers, which contributes substantially to the local economy. Development continues in Downtown Tampa; other areas of growth include the neighborhoods surrounding the University of South Florida, as well as the Westshore area. 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 visitation. 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 1,400 rooms are in various stages of development. The Westshore/Airport market in South Tampa closely follows, with approximately 1,300 rooms under development. A number of limited- and select-service hotels are being developed 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 take place within the next five to seven years.

Twenty-nine hotels totaling over $444 million in transaction volume have sold since January 2017, including such significant assets as the Sirata Beach Resort and Conference Center in February 2017 (highest total price paid at $108,000,000, or $283,220 per key), as well as the Beach House Suites February 2017 (highest per-key price paid at $51,000,000, or $725,714 per key); both of these beachfront properties are located in Saint Pete Beach. Additionally, the historic Renaissance Vinoy Resort in Saint Petersburg sold in September 2017 for $16,000,000 (or $45,496 per key). Most transactions took place in the Tampa-area proper, with the remaining 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 2018.

* 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: Less than -10%

Tampa - St Petersburg RevPAR Change

Tampa - St Petersburg RevPAR

Year RevPAR
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 $92.25
2018 $94.54
2019 (f) $94.53
2020 (f) $97.39

For more information, please contact:

John Lancet, MAI
[email protected]
  • +1 305 378-0404 (w)
  • +1 305 502-1167 (m)
Kathy Conroy, MAI
[email protected]
  • +1 305 378-0404 (w)