Hospitality Industry in Holding Pattern

ORLANDO-Central Florida’s hospitality market is expected to improve but probably won’t set any records as it moves into the final quarter, according to a new market analysis by Marcus & Millichap.

Sales and room rates remained flat in the first six months of the year while occupancies crept up slightly. With average first-half occupancy at the 71.9% level and average daily room rates at $71.69, investors and lenders remain cautious, even though the first-quarter total visitors count was up .2% to 20.1 million, the report finds.

“Hospitality fundamentals in the Orlando area will continue to gradually improve, but are sensitive to public concern regarding war, terrorism and other uncertainties, and will be perceived as more fragile by investors and lenders alike,” says the study, prepared by senior market analyst Adam P. Weber in M&M’s Phoenix office.