HVS Market Report – Tampa Bay Lodging Market: A High-Impact Destination

The better Tampa Bay accommodation marketplace is prospering, as evidenced via emerging RevPAR ranges, the doorway and next absorption of vital new guestroom stock, a number of high-profile transactions, and a large number of thrilling building initiatives available in the market’s pipeline.

Lodge Marketplace Evaluation

The better Tampa Bay marketplace space has skilled competitive expansion within the post-pandemic duration, reinforcing the marketplace’s place as a high-impact tourism vacation spot. In January 2020, Consult with Tampa Bay set a function to achieve a thousand million greenbacks in hotel-room income via year-end 2025, and this venture was once completed via Hillsborough County 3 years forward of time table in 2022.

Document ranges of gross vacationer tax collections, a 6% tax levied on resort room revenues, had been additionally reported in each Hillsborough and Pinellas counties in 2022, some distance surpassing collections reported in 2019. Moderate day by day price (ADR) is the main motive force of emerging resort revenues, with the Tampa Bay marketplace exhibiting exceptional price expansion within the post-pandemic duration.

Gross Vacationer Tax Collections—Hillsborough County

Supply: Hillsborough County Tax Collector

Gross Vacationer Tax Collections—Pinellas County

Supply: Pinellas County Tax Collector

Tampa Bay New Provide

In contrast to different huge gateway markets, Tampa Bay didn’t enjoy a slowdown of recent provide, with more or less 7% of Hillsborough and Pinellas counties’ just about 48,000 guestrooms being added from 2020 via 2022. The next constitute the marketplace’s maximum noteworthy additions:

• The Karol Lodge, St. Petersburg Clearwater, a Tribute Portfolio Lodge (123 keys, February 2020)
• Tru via Hilton St Petersburg Downtown Central Ave (132 keys, July 2020)
• Lodge Haya (178 keys, September 2020)
• JW Marriott Tampa Water Side road (519 keys, December 2020)
• Aloft/Part Twin-Logo Lodge Tampa Midtown (226 keys, January 2021)
• Hyatt Position/Hyatt Space Twin-Logo Lodge Tampa Downtown (345 keys, March 2021)
• AC Lodge via Marriott Clearwater Seaside (144 keys, June 2022)
• Tampa EDITION (172 keys, September 2022)

Emerging Charges

Opposite to maximum different main markets in this period of time, call for within the Tampa marketplace has in large part stored tempo with the will increase in provide since 2020, as evidenced via incessantly emerging occupancy and ADR, pointing to Tampa Bay as one in all Florida’s premier locations.

Downtown Tampa has develop into an alternate assembly and workforce vacation spot to the customary lodge markets of South Florida, with the improvement of Water Side road Tampa and the doorway of the Tampa EDITION and JW Marriott Tampa additional enriching the walkability and enchantment of the realm surrounding the conference middle. Given the marketplace’s standing as a less-restrictive vacation spot, a number of political, non secular, and fraternal workforce occasions relocated their occasions to Tampa in 2020 and 2021, with many such teams returning to the conference middle in 2022 given their prior luck. The accessibility of the cruise port and world airport additionally complements the better Tampa Bay marketplace space, with cruise attendance and airline passenger visitors counts incessantly rebounding to pre-pandemic ranges.

Wholesome call for for accommodations within the better marketplace and the realm’s beauty as a relaxation, industrial, and assembly and workforce vacation spot have resulted in vital price and RevPAR expansion within the post-pandemic duration.

Annual ADR and RevPAR for Tampa

Supply: STR International

Main Building Initiatives within the Tampa Bay House

A pattern of the most important traits recently underway or just lately finished within the Tampa Bay marketplace space is highlighted underneath.

Just lately Opened

• Water Side road Tampa is an ongoing waterfront building situated in Downtown Tampa alongside the Garrison Channel, extending from the Tampa Conference Heart to the Florida Aquarium. The advance is deliberate to be finished in 3 stages. Water Side road Tampa Section I used to be finished in 2022 and reworked the downtown Tampa waterfront right into a walkable neighborhood, house to a number of administrative center, retail, eating, and home areas that invite various artwork and cultures. One of the vital maximum notable traits finished throughout Section I come with the Tampa EDITION (Tampa Bay’s first five-star resort) and ROOST Tampa (a boutique condo resort). Building of Section II of Water Side road Tampa started in early 2023 and is deliberate to be finished via 2027.
• Ascent St. Petersburg is a mixed-use building situated in Downtown Saint Petersburg and includes a 172-room AC Lodge via Marriott and 357 residences.

Nearing Final touch

• The 137-room Epicurean Lodge, Autograph Assortment, situated in Tampa’s Hyde Park district, is nearing crowning glory of a $21-million, 51-guestroom growth. The growth is predicted to be finished via the summer season of 2023 and also will come with 91 parking areas, a personal foyer, assembly area, and a rooftop terrace.
• Building is progressing on a SpringHill Suites via Marriott in Downtown Tampa, with the 169-key resort anticipated to be whole via year-end 2023.

Below Building

• 400 Central is a $400-million luxurious condo building that can stand 46 tales tall and can area 301 devices in St. Petersburg’s Downtown district. The advance is predicted to incorporate 25,000 sq. ft of retail area and 40,000 sq. ft of administrative center area. As soon as whole in 2024, 400 Central shall be some of the tallest residential structures on Florida’s Gulf Coast.
• The 163-room Moxy Lodge via Marriott in downtown Saint Petersburg’s EDGE District is predicted to open in early 2024.
• The Tampa Conference Heart is present process a $38-million renovation, the biggest in its historical past. The renovation is predicted to be finished via year-end 2023 with a refreshed glance within the present assembly rooms and 18 new assembly rooms totaling 18,000 sq. ft of recent assembly area.

Early Building

• The Pendry Tampa, a five-star luxurious resort, is predicted to open in 2026 alongside the Hillsborough River and the Tampa Riverwalk, introducing over 200 resort guestrooms and personal Pendry Flats to Downtown Tampa.
• Orange Station is a mixed-use building situated within the EDGE District of Downtown Saint Petersburg the place the previous Saint Petersburg Police Division headquarters as soon as stood. It’s deliberate to incorporate a complete of 64,000 sq. ft of administrative center and retail area and over 100 residential devices.
• The Lodge Riverwalk Tampa, previously referred to as the Sheraton Tampa Riverwalk, is predicted go through a conversion to a Hyatt Regency via year-end 2024. Hyatt Regency is a well-known and ignored emblem within the Tampa Bay space, because the Hilton Tampa Downtown operated as a Hyatt Regency from its opening in 1982 till its conversion to a Hilton in 2013.
• The Florida Aquarium is present process a $40-million growth this is anticipated to be finished in 2025. The growth is deliberate to incorporate a brand new out of doors show off that can characteristic California sea lions and African penguins, a unique show off area that can characteristic a rotation of animals, and a two-level puffin habitat.
• St. Pete Mayor Ken Welch introduced that the Hines and Tampa Bay Rays redevelopment proposal for the Ancient Gasoline Plant District, which properties Tropicana Box, was once decided on from the 4 proposals beneath evaluation. The proposal options 859 housing devices, together with 23% reasonably priced housing, and a $15-million funding in off-site techniques for house possession and condo help.

Top-Profile Transactions in Tampa Bay

Tampa Bay’s beauty as a vacation spot has no longer long past not noted, and gross sales process within the better Tampa resort marketplace sped up in each 2021 and 2022, in particular on and across the space seashores. The next transactions constitute a pattern of accommodations that offered for no less than $400,000 in step with key in 2022.

• The 382-key Sirata Seaside Lodge and Convention Heart transacted for just about $542,000 in step with key, representing a complete funding of $207 million, in December 2022. This sale displays a just about $100-million building up in value from its 2017 gross sales value of $108.19 million, consistent with public data.
• The Lodge Zamora, a 72-unit beach-adjacent belongings in St. Pete Seaside identified for its in style rooftop eating place and bar, offered to Minneapolis-based Sherman Mates in September 2022 for $481,000 in step with key.
• The 33-year-old DoubleTree Seaside Lodge via Hilton North Redington Seaside offered in July 2022. The 125-unit belongings transacted for $527,000 in step with key, with the consumer indicating that an in depth renovation will start in the summertime of 2023.
• The Tampa Bay Buccaneers chairman’s workforce bought the 1966-built Dolphin Seaside Lodge in St. Pete Seaside in Would possibly 2022 for $84.2 million. The 173-key lodge is slated for a complete renovation.
• The 343-key Wyndham Grand Clearwater Seaside lodge, which options two 15-story guestroom towers going through the Gulf of Mexico, offered for $496,000 in step with key in March 2022.
• A New York-based company bought the fashionable St. Pete sea coast vacationer vacation spot and locals hangout the Postcard Inn at the Seaside in March 2022 for $423,000 in step with key. The resort just lately underwent renovation, however further improvements and updates are anticipated from the brand new homeowners.

Conclusion

In spite of heightened considerations of a recession and larger insurance coverage premiums on account of an energetic 2022 storm season, the outlook for Tampa Bay stays positive given its reputation as a vacation spot and its tough building pipeline. Different certain elements that bode smartly for the marketplace come with its acclaimed world airport, energetic cruise terminal, and recognition as a substitute assembly and workforce vacation spot.

Our crew continuously screens the Tampa Bay marketplace, and our many consulting engagements during the realm stay us abreast of the most recent developments and shifts available in the market. We replace our forecasts per thirty days. For more info, touch Hannah McManus or Angela Lahti of HVS Tampa-St. Pete.

St. Pete Emerging, “36-story Ascent St. Petersburg tops out in downtown St. Pete,” April 20, 2022. Retrieved February 16, 2023.

HospitalityNet, “Epicurean Lodge, Autograph Assortment, Tampa’s Epicurean Lodge Serving Up $21 Million Growth,” Would possibly 6, 2022. Retrieved February 16, 2023.

St. Pete Emerging, “400 Central starts basis paintings, readies for vertical development in downtown St. Pete,” October 13, 2022. Retrieved February 16, 2023.

TBay As of late, Brad Haft, “The Moxy Lodge strikes ahead in St. Petersburg,” January 19, 2023. Retrieved February 16, 2023.

Tampa.gov, Kirstin Albert, “Tampa Conference Heart Releases Up to date Renderings of Renovated Façade,” November 14, 2022. Retrieved February 16, 2023.

About Hannah McManus

As a hospitality advisor and resort analyst founded in Saint Petersburg, Florida, Hannah collaborates on and gives considerate insights for initiatives together with resort value determinations, marketplace research, portfolio valuations, and feasibility research for proposed accommodations, inns, and mixed-use hospitality property. A protracted-time resident of the West Coast Florida area, she gives experience in leisure-driven and coastal Florida markets with a profound working out of Florida property. Hannah’s enjoy extends past Florida throughout various markets within the Southeast and New England, together with engagements within the better New York Town marketplace. Touch Hannah at (410) 967-8879 or hmcmanus@hvs.com.

About Angela Lahti

Angela Lahti is a consulting and valuation go together with the HVS Tampa-Saint Petersburg administrative center. In Would possibly 2018, Angela graduated from the College of Florida with a Bachelor of Arts in Trade Management that specialize in Commute and Tourism Control and a minor in Actual Property. Following commencement, Angela moved to Colorado to pursue her interest for hospitality via running at Crested Butte Mountain Lodge. She held more than a few positions, together with Holiday Gross sales Agent, Air Commute Specialist, and Commute Services and products Assistant Supervisor. Sooner than shifting again to her place of birth of Tampa and becoming a member of HVS, Angela additionally labored as a bookkeeper in Gunnison, Colorado, managing the accounting and administrative wishes of a number of native eating places and retail shops. Touch Angela at (813) 361-3939 or alahti@hvs.com.