Following Hurricane Michael, markets in Florida hit hardest by the storm reported double-digit increases in demand (room nights sold) and revenue per available room (RevPAR), according to an analysis by STR’s Consulting & Analytics team.
When looking at the 10-day period (11 October through 20 October) after Hurricane Michael made landfall, the Florida Panhandle market saw a 36.1% increase in demand. Typically, markets will see demand drop ahead of a major storm due to evacuations, but the Florida Panhandle reported only a 5.1% decrease in demand when the initial warning was issued on 8 October.
State % Change Occupancy % Change ADR % Change RevPAR % Change Demand
Alabama +8.9% +1.1% +10.0% +10.6%
Florida -4.1% +6.0% +1.6% -0.9%
Georgia +3.3% -0.3% +3.0% +5.4%Source: STR / comparison of week of 14-20 October 2018 with week of 15-21 October 2017
“The Florida data reflects the comparison with the post-Hurricane Irma time period in Central and Southern Florida last year,” said Emmy Hise, STR’s senior consultant. “A month after Hurricane Irma made landfall in Florida, strong demand was still visible in the state. Now, one year later, demand appears to be dropping, but it is actually at a normal level when factoring in the significant demand growth from the previous year.”
As expected, with the exception of the Albany/Southwest, GA submarket, the highest year-over-year RevPAR increases took place in the Florida Panhandle submarkets. The most significant decreases in the Florida submarkets were mainly due to inflated demand from the previous year.
Top and bottom five submarkets ranked by year-over-year RevPAR comparison:
Submarket RevPAR % Change
Panama City, FL $107.54 +88.7%
Fort Walton Beach, FL $130.41 +73.9%
Florida Panhandle Area $90.52 +60.9%
Pensacola, FL $99.73 +60.4%
Albany/Southwest, GA $84.91 +52.9%
Florida Central Area $55.63 -26.2%
Miami South, FL $84.92 -26.8%
Upper Florida Keys $114.82 -33.7%
Fort Meyers/Bonita Springs, FL $49.80 -38.3%
Tuscaloosa, AL $56.25 -47.6%Source: STR/ comparison of week of 14-20 October 2018 with week of 15-21 October 2017
.jpg){kind=tracking}
