Q4 Report Highlight: Tampa

Tampa’s hotel market is segmented, with distinct performance drivers in each submarket. Coastal areas like St. Petersburg and Clearwater primarily attract domestic leisure travelers. In contrast, Tampa’s central business district (CBD) and eastern areas rely more on conventions, conferences, corporate travel, and sporting events. The hospitality industry in Tampa experienced an increase of 11.53% compared to quarter-over-quarter. On a 5-year average, ADR is up by 13.5%. RevPAR increased by 37.41% compared to quarter-over-quarter. Occupancy rates had a significant increase, rising from 64.1% in Q3 2024 to 78.1% in Q4 2024. This is due to Tampa experiencing a spike in tourism numbers during the holiday season. This can be attributed to the increase in construction costs and anticipation of the election results in Q4 2024. The number of rooms under construction decreased by approximately 12% when compared year-over-year. Hotel sales in Tampa have declined by 63% compared to year-over-year. However, within the Tampa market, there are a little over 1,000 rooms to be developed in 2025. The Opal Sol Hotel is the most recently opened development in Tampa, bringing 248 new rooms to the market.

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