Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, has published its Midyear 2024 Tampa-St. Petersburg Hospitality Market Report.
“Tampa-St. Petersburg’s hospitality market continues to showcase strength in its full-service sector, as affordability and improving demand trends position the market for steady growth,” Vice President/Regional Manager David Bradley said in a statement.
Marcus & Millichap’s Tampa-St. Petersburg Hospitality Market Report, Midyear 2024 provides investors with vital insight and analysis on the current state of the hospitality market, including:
- The full-service sector saw a 50-basis-point improvement in occupancy, driven by affordable, high-quality accommodations. At $260 per night, full-service stays are among the most competitively priced in Florida’s major hotel markets.
- Construction activity has slowed, with only 1,200 rooms in the development pipeline, and less than 400 keys expected to open in the second half of 2024. This reduced supply pressure may lead to occupancy gains beyond 2024.
- Tampa-St. Petersburg recorded a stable ADR of $169.84 by mid-2024, a notable achievement as other Florida markets saw declines. The CBD-Airport submarket led gains, with an average daily rate increase of 1.8 percent over the past year.
While metro-wide occupancy dipped to 69.0 percent, the CBD-Airport submarket countered this trend with a 40-basis-point increase, reaching a 72.0 percent occupancy rate.
Despite slight RevPAR declines across the metro, full-service hotels continue to show upward momentum, with RevPAR 27 percent above 2019 levels.
“Tampa-St. Petersburg’s reputation as an affordable yet high-quality destination continues to draw both leisure and business travelers, creating strong opportunities for investors in this evolving market,” added Bradley.
Access Marcus & Millichap’s Midyear 2024 Tampa-St. Petersburg Hospitality Market Report here.