Metro Orlando hoteliers will see the region’s hotel supply increase in the next two years and occupancy remain relatively flat, according to STR, which globally tracks the hotel industry.
As of last month, 2,032 hotel rooms are under construction in the region, according to STR. Bobby Bowers, STR's senior Vice President, said supply will only increase going into 2018, meaning hoteliers will continue to battle for tourist dollars.
“I think that Orlando’s a lot like a lot of the other markets we see,” said Bowers. “At this point in the cycle, occupancy rates are flattening out a bit and rate growth is moderate.”
Bowers said area hotels are on track to have a similar 2017 and 2018 as the rest of the U.S. industry.
“I don’t think there’s any big concern or anything like that,” he said.
Metro Orlando, defined as Kissimmee, Orlando and Sanford, had an average occupancy rate of 75.5 percent in 2016.
Presenting during the Central Florida Hotel & Lodging Association’s annual luncheon Thursday, Bowers said that Orlando’s occupancy rate will remain flat in 2017, with a projected 0.6 percent increase.
As new supply comes online, however, next year's occupancy rate might take a hit and decrease about 1.3 percent, according to Bowers.
Despite any dips in occupancy, Bowers said hoteliers are on track to make more money in the next two years with room rates expected to increase.
Orlando, a Top 25 market, is projected to have an increase in revenue made per room by as much as 3 percent over the next two years, said Bowers.
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