Fort Lauderdale Hospitality Market Report
Market Overview
Fort Lauderdale, situated on the southeastern coast of Florida, is known for its stunning beaches, boating canals, and a thriving tourism industry. Often referred to as the “Venice of America” due to its extensive network of canals, Fort Lauderdale boasts a unique blend of urban sophistication and tropical allure. The market’s tourism industry is a key economic driver, drawing visitors from around the world with its year-round warm weather, beautiful landscapes, and diverse attractions. The group business segment, rebounding from the effects of the COVID-19 pandemic, exhibited the most impressive performance in 2023.
Market Performance
In Q4 2023, the ADR at Luxury and Upscale hotels witnessed a 9% increase compared to the same period in 2022. In contrast, transient ADR experienced a decline of 4%. Additionally, group occupancy showed a notable rise of 13%, whereas transient occupancy decreased by 1%.
Hotel performance is expected to be modest in the initial months of 2024, with an anticipated improvement in the latter half of the year. The forecast indicates a 2% growth in demand for 2024, yet the recent hotel openings towards the end of 2023 have absorbed a significant portion of this demand increase. Projections suggest that ADR and RevPAR are likely to experience growth of less than 2% for the entire calendar year of 2024.
Construction
There are five properties totaling about 1,300 rooms under construction in Fort Lauderdale, constituting 3.4% of the local market’s current supply. In contrast, 2.6% of the entire industry’s existing inventory is under construction nationwide. The most significant ongoing project is the Omni Fort Lauderdale Hotel, comprising 800 rooms and anticipated to open in early 2026 near the Greater Fort Lauderdale/Broward County Convention Center.
Sales
Hotel sales slowed in 2023 as investors contended with rising interest rates and tightened lending standards. From January to October 2023, there were 20 transactions in Fort Lauderdale, representing the lowest number in the past decade, excluding the slowdown in 2020 caused by the pandemic. Normally, the market sees an average of around 35 trades in a typical year.
