Q4 Report Highlight: FL Panhandle
- zaverhotels
- Feb 4
- 1 min read
Florida Panhandle hotels are facing headwinds from increased competition, economic challenges, and a growing room supply. Consequently, average daily rates (ADR) fluctuated and fell to $119.16 in Q4 2024, a 25.6% drop quarter-over-quarter but only a modest 1.7% decrease year-over-year. RevPAR reached a low of $65.44, down 37.8% from the previous quarter but went up 4.6% year-over-year. Occupancy rates also declined significantly in Q4, falling to 54.2%, 11.1% below the five-year average, largely due to recent room additions. Currently, 3,956 rooms are under construction, with another 4,700 rooms in final planning stages, indicating substantial supply growth through 2026. Despite these challenges, hotel sales activity has been relatively steady, with $135.9 million in transactions in 2024, surpassing the $84.7 million recorded in 2023. Economy and midscale properties have led sales activity. The Florida Panhandle’s emergence as a popular beach and leisure destination, with peak tourism seasons during spring break, summer, and holidays, drives significant hotel demand. This demand is further supported by annual events and festivals such as the Pensacola Seafood Festival, Destin Fishing Rodeo, Gulf Coast Music Festival, sports tournaments, and Blue Angels air shows. As a result, the Panhandle’s hotel market is expected to remain generally stable despite the current challenges.
