Marcus & Millichap Releases Midyear 2024 Fort Lauderdale Report
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Marcus & Millichap published its Midyear 2024 Fort Lauderdale Hospitality market report.
“Despite the challenges posed by inflationary pressures on operational expenses, Fort Lauderdale hotels have maintained a general level of profitability due to the resilience of the local ADR, which has benefited from positive net migration of capital, population and business, along with a tempered new supply of hotel rooms,” Robert Hunter, senior managing director, said in a statement.
Marcus & Millichap’s Fort Lauderdale Hospitality Market Report, Midyear 2024 provides investors with insight and analysis on the current state of the hospitality market, including:
Household budget constraints have led to a near 500-basis-point drop in occupancy for economy hotels, particularly affecting areas like Coral Springs-Pompano Beach, though easing inflation and reduced new supply may support future improvement.
Over 30 major companies relocated to the metro in 2023, driving increased hotel bookings near business hubs. Full-service and upper midscale hotels have benefited the most from this trend.
Occupancy across Fort Lauderdale submarkets has improved, with Fort Lauderdale-Beach seeing a 180-basis-point rise, contrasting a 150-basis-point decline in Coral Springs-Pompano Beach. Despite a slight drop in occupancy to 71.5 percent by year-end, average daily rates (ADR) continue to rise, driven by the full-service segment, with an expected year-end ADR of $185.95.
Development activity remains limited due to high building costs and tighter lending standards, with only 150 rooms expected to open in 2024, marking the lowest addition since 2016.
“Fort Lauderdale’s position as a corporate and leisure destination continues to strengthen, supported by strong job growth and strategic infrastructure investments such as the $1 billion Broward County Convention Center renovation,” added Senior Associate Leo Reilly.
