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Hotels and motels

Hotel Development in Southwest Florida: A Mixed Bag

Strategic Insights

— 2 min read

The southwest Florida region has seen a surge in hotel development, but the pace of progress has been slow, with many hotels still in the planning stages or facing delays. By the end of 2006, only one hotel, the 95-room Hotel Indigo at U.S. 41 and Boulevard of the Arts in Sarasota, had opened its doors. This was six months later than anticipated, highlighting the challenges of increasing hotel inventory in the region. Tourism promoters point to the limited daily accommodations available, making it difficult to meet the demand for last-minute planning and short trips.

Key Takeaways:

  • The Sarasota-Bradenton market has 8,211 rooms available, a 235-room increase from January 2006, due to the conversion of a Bradenton hotel to a Holiday Inn Express.
  • Charlotte County has 887 rooms available, a decrease from 1,095 in 2003 due to the loss of a 100-room Holiday Inn in Punta Gorda following Hurricane Charley.
  • 775 hotels, representing 80,951 rooms, are expected to open by the end of 2006, increasing to 1,087 hotel openings with 115,956 rooms in 2007 according to Lodging Econometrics.
  • Five hotels are scheduled to start construction in the Sarasota-Bradenton market by the end of September 2007, with five more in the early planning stages.
  • Some hotel developers are optimistic about the region, citing available financing and a strong demand for hotels.
  • However, the time between hotel announcements and openings is increasing due to rising construction costs and material shortages, with lead times ranging from 22 to 26 months.
  • Local tourism promoters emphasize the need for more daily accommodations to meet visitor demand, citing the difficulty of securing reservations for short trips and last-minute planning.

Statistics:

  • 8,211 rooms available in Sarasota and Manatee counties as of October 2006 (Source: Smith Travel Research)
  • 887 rooms available in Charlotte County as of October 2006 (Source: Smith Travel Research)
  • 775 hotels opening by the end of 2006, representing 80,951 rooms (Lodging Econometrics)
  • 1,087 hotel openings with 115,956 rooms expected in 2007 (Lodging Econometrics)

Sources:

  • Smith Travel Research: not dated
  • Lodging Econometrics, Patrick Ford: not dated
  • Hilton Hotel, Hotel Indigo: not dated
  • Sarasota Convention and Visitors Bureau, Virginia Haley: not dated
  • Bradenton Area Convention and Visitors Bureau, Larry White: not dated
  • Interview with developer Joe Suriol: not dated
  • Interview with developer Michael Lepore: not dated
  • Interview with developer Jay Patel: not dated
  • Interview with Finergy Development Group: not dated
  • Interview with Benderson Development: not dated

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