Experts Anticipate Resort Growth in the Florida Keys
Wednesday, September 24, 2014
Travel experts suggest that the biggest resort market in the U.S. may be located at the lowest point of our country — the Florida Keys.
While Key West has always been a popular tourist destination, more visitors are traveling the Florida Keys than ever before. Statistics show that 2.9 million visitors are expected to visit in 2014, making the Keys one of the best performing travel destinations in America.
Overall, resorts in the Florida Keys have seen their revenue per available room (a term in the industry known as RevPAR) jumped 15% in 2013 to $218 per room. This revenue is almost 20% higher than the closest market, Miami, whose RevPAR is currently at $183. In June of 2014, the Key’s RevPAR even jumped as high as $234.
JLL’s Hotels & Hospitality Group, a real estate services group for luxury hotels and timeshares, has been monitoring the success of the Key’s tourism industry over the past few years. They expect that this boost in revenue will lead to more resorts in the near future.
Managing Director of JLL’s Hotels & Hospitality Group, Gregory Rumpel shared, “The Keys are thriving, delivering yields more commonly associated with much larger top-tier markets, like New York. Investors, including big institutional investors, are taking notice.”
Investors are also purchasing existing resorts, and remodeling them into more attractive, luxury properties. Since 2011, 23 resorts have changed ownership, that’s 27% of the market’s inventory. These mergers and acquisitions have produced over $853 million in sales.
Popular brands such as the Hyatt Vacation Club and Starwood Vacation Network, already offer timeshare resorts in Key West. With such significant growth in travelers and revenue, we can expect more timeshare resorts to follow.
Stay tuned to TheTimeshareAuthority.com for more information on this growing market.