Sarasota Hospitality Market Report

Market Overview

Sarasota stands as one of the smaller hotel markets in the U.S., comprising more than 12,000 rooms distributed among 191 properties. The market is characterized by smaller hotels, with the average building housing around 65 rooms, notably lower than the U.S. average of 89 rooms per building.

More than 20% of the market’s rooms are luxury or upscale.

Market Performance

Over the last year, Sarasota’s average monthly occupancy rate has been 68.9%, which is notably higher than the national average of 63.0% for the same period. The RevPAR in the Sarasota hotel market experienced a 6.1% decrease over the past 12 months as of December. ADR stands at $196.53, and its forecast is relatively stable over the next four years.

Construction

The construction pipeline is bustling with activity in Sarasota, with the current development of 850 rooms representing a 6.8% increase to the existing inventory. This continues a trend of new development in the market, including the completion of five projects with approximately 420 rooms over the past three years. However, this growth was partially mitigated by several demolitions, resulting in the removal of around 120 rooms during the same timeframe.

Sales

Over the last 12 months, the market witnessed only four hotel transactions, significantly fewer than the average number of deals in a typical year.