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More than $500M in Florida Keys hotel deals as demand rebounds
Three hotels in the Keys sold in the last two months for over $500M combined, following a period of slumping RevPAR and occupancy.
Bisnow reports the Florida Keys hotel market is rebounding as leisure travel returns, with hotel investors stepping in after a recent slump in performance metrics.
According to Bisnow, three hotels across Islamorada and Key West sold in the last two months for more than $500M combined. The deals follow a year in which the Keys took the top spot in Florida for revenue per available room over the past 12 months, surpassing Naples and West Palm Beach.
Bisnow also notes that performance had fallen before this stretch, with room rates, RevPAR, and occupancy described as having been in decline. CoStar Senior Director of Hospitality Market Analytics Chantal Wu said that last year required “sad market reports” because results were down, while this year offers “positive news.”
The article attributes the Keys’ tight supply and high rates to state limits on what can be built. Bisnow cites CoStar data showing there were 209 hotels in March 2020, and 206 as of this summer, and includes comments from Marathon chamber CEO Daniel Samess that approval barriers and state entitlements make new development harder.