Trending
Ritz-Carlton Sarasota – Image Credit Ritz-Carlton
The Sarasota market is no longer just a snowbird destination in the winter months. Instead, the area is now thriving as a year-round destination, as evidenced by the area’s rising tourist tax collections, expanding demand centers including athletic facilities, and numerous development projects in the market’s pipeline.
Sarasota Hotel Market Trends and Shifts
Sarasota has historically been a popular destination for transient winter travelers seeking warmer weather, resulting in heightened hotel demand in the first quarter of the year. This seasonality pattern was disrupted by the COVID-19 pandemic, when Florida’s position as a less-restrictive destination resulted in stronger visitation outside of the peak season and into the shoulder months. While demand has normalized somewhat in the post-pandemic period, off-season demand levels remain higher than those of pre-pandemic years.
This increased demand is evidenced by the gross tourist tax collections, which are illustrated in the table below. The 6% tourist tax is levied on hotel rooms revenues in Sarasota County. While some normalization in demand has occurred in the post-pandemic period, gross tax collections for all months of 2022, 2023, and 2024 remained significantly above the levels reported in 2019. Average daily rate (ADR) growth is the primary driver of rising hotel revenues, and the entrance of high-rated new supply combined with the popularity of Sarasota as a leisure destination has accelerated this upward trend in the last several years.
Gross Tourist Tax Collections for Sarasota County Illustrate
Hotel Revenue Growth & Reduced Seasonality
Source: Sarasota County Tax Collector
While the market is known primarily as a leisure destination, particularly in the mild winter months, local entities have successfully marketed Sarasota as a commercial and group destination. Area sports facilities have also attracted swimming, rowing, and equine athletes to the market, many of whom elect to stay in higher-end downtown hotels. Sports-related development in Sarasota includes an indoor sporting facility under construction at Nathan Benderson Park, as well as an expanded training and development facility at Ed Smith Stadium, the Spring Training location for the Baltimore Orioles.
The presence of five universities within five miles of the downtown area also bolsters market demand, particularly during move-in periods, graduations, and other campus events. The University of South Florida Sarasota-Manatee campus opened a residence hall in August 2024, allowing students to live on campus for the first time.
The Sarasota market is a favorable relocation community in Florida for high-income earners, with developments like the Lakewood Ranch planned community serving as primary draws. Furthermore, the county is home to the top public school district in Florida, which attracts families to the market. Impactful public/private partnership projects, including The Bay park development, Mote Marine Laboratory & Aquarium expansion, Van Wezel Performing Arts Hall redevelopment, also attract residential and commercial relocations to this market. The county is expected to support a population of over 500,000 by 2030[1], and over 10,000 residences are presently in development. With this population growth, hotel demand is anticipated to be bolstered by new residents seeking temporary accommodations while relocating to Sarasota, as well as by greater numbers of visitors to local residents. Hotel Development in Sarasota
Given the market’s position as a high-quality leisure destination, in combination with the aforementioned additional demand factors, it is no surprise that hotel development in the greater Sarasota area remains strong despite the current economic climate and the impact of Hurricanes Helene and Milton in late 2024. A sample of hotel projects that are currently underway or were recently completed in Sarasota is listed below.
Conclusion
Sarasota has shed its reputation as a snowbird market and emerged as a destination for the arts, area sports, beautiful beaches, cultural attractions, and high-end lodging. Despite increased concerns of a recession, rising development costs, and higher insurance premiums as a result of the active 2024 hurricane season, the outlook for the greater Sarasota hotel market remains optimistic given its numerous high-quality attractions, international airport with expanding flight paths, growing reputation as a sports destination, and influx of relocations.
At HVS, we turn data into powerful insights that drive your success. Our strategic positioning within local markets empowers us to conduct primary interviews with key market participants. This approach ensures we obtain real-time insights and current data for each market we operate in, giving you a distinct competitive edge. For more information about the Sarasota market or for help making informed investment decisions that align with your goals and risk tolerance, contact Hannah McManus of HVS Tampa-St. Pete.
[1] Rayer, Stefan, et al. Florida Population Studies, vol. 57, report 198, “Projections of Florida Population by County, 2025–2050, With Estimates for 2023.” Jan 2024. Retrieved May 2025.
About Hannah McManus
Hannah, a Director with HVS Consulting & Valuation, leads the Saint Petersburg, Florida office. Hannah collaborates on and provides thoughtful insights for projects including hotel appraisals, market studies, portfolio valuations, and feasibility studies for proposed hotels, resorts, and mixed-use hospitality assets. A long-time resident of the West Coast Florida region, she offers expertise in leisure-driven and coastal Florida markets with a profound understanding of Florida assets. Hannah’s experience extends beyond Florida across a variety of markets in the Southeast and New England, including engagements in the greater New York City market. Contact Hannah at (410) 967-8879 or hmcmanus@hvs.com. Connect with Hannah on LinkedIn
Ritz-Carlton Sarasota – Image Credit Ritz-Carlton
The Sarasota market is no longer just a snowbird destination in the winter months. Instead, the area is now thriving as a year-round destination, as evidenced by the area’s rising tourist tax collections, expanding demand centers including athletic facilities, and numerous development projects in the market’s pipeline.
Sarasota Hotel Market Trends and Shifts
Sarasota has historically been a popular destination for transient winter travelers seeking warmer weather, resulting in heightened hotel demand in the first quarter of the year. This seasonality pattern was disrupted by the COVID-19 pandemic, when Florida’s position as a less-restrictive destination resulted in stronger visitation outside of the peak season and into the shoulder months. While demand has normalized somewhat in the post-pandemic period, off-season demand levels remain higher than those of pre-pandemic years.
This increased demand is evidenced by the gross tourist tax collections, which are illustrated in the table below. The 6% tourist tax is levied on hotel rooms revenues in Sarasota County. While some normalization in demand has occurred in the post-pandemic period, gross tax collections for all months of 2022, 2023, and 2024 remained significantly above the levels reported in 2019. Average daily rate (ADR) growth is the primary driver of rising hotel revenues, and the entrance of high-rated new supply combined with the popularity of Sarasota as a leisure destination has accelerated this upward trend in the last several years.
Gross Tourist Tax Collections for Sarasota County Illustrate
Hotel Revenue Growth & Reduced Seasonality
Source: Sarasota County Tax Collector
While the market is known primarily as a leisure destination, particularly in the mild winter months, local entities have successfully marketed Sarasota as a commercial and group destination. Area sports facilities have also attracted swimming, rowing, and equine athletes to the market, many of whom elect to stay in higher-end downtown hotels. Sports-related development in Sarasota includes an indoor sporting facility under construction at Nathan Benderson Park, as well as an expanded training and development facility at Ed Smith Stadium, the Spring Training location for the Baltimore Orioles.
The presence of five universities within five miles of the downtown area also bolsters market demand, particularly during move-in periods, graduations, and other campus events. The University of South Florida Sarasota-Manatee campus opened a residence hall in August 2024, allowing students to live on campus for the first time.
The Sarasota market is a favorable relocation community in Florida for high-income earners, with developments like the Lakewood Ranch planned community serving as primary draws. Furthermore, the county is home to the top public school district in Florida, which attracts families to the market. Impactful public/private partnership projects, including The Bay park development, Mote Marine Laboratory & Aquarium expansion, Van Wezel Performing Arts Hall redevelopment, also attract residential and commercial relocations to this market. The county is expected to support a population of over 500,000 by 2030[1], and over 10,000 residences are presently in development. With this population growth, hotel demand is anticipated to be bolstered by new residents seeking temporary accommodations while relocating to Sarasota, as well as by greater numbers of visitors to local residents. Hotel Development in Sarasota
Given the market’s position as a high-quality leisure destination, in combination with the aforementioned additional demand factors, it is no surprise that hotel development in the greater Sarasota area remains strong despite the current economic climate and the impact of Hurricanes Helene and Milton in late 2024. A sample of hotel projects that are currently underway or were recently completed in Sarasota is listed below.
Conclusion
Sarasota has shed its reputation as a snowbird market and emerged as a destination for the arts, area sports, beautiful beaches, cultural attractions, and high-end lodging. Despite increased concerns of a recession, rising development costs, and higher insurance premiums as a result of the active 2024 hurricane season, the outlook for the greater Sarasota hotel market remains optimistic given its numerous high-quality attractions, international airport with expanding flight paths, growing reputation as a sports destination, and influx of relocations.
At HVS, we turn data into powerful insights that drive your success. Our strategic positioning within local markets empowers us to conduct primary interviews with key market participants. This approach ensures we obtain real-time insights and current data for each market we operate in, giving you a distinct competitive edge. For more information about the Sarasota market or for help making informed investment decisions that align with your goals and risk tolerance, contact Hannah McManus of HVS Tampa-St. Pete.
[1] Rayer, Stefan, et al. Florida Population Studies, vol. 57, report 198, “Projections of Florida Population by County, 2025–2050, With Estimates for 2023.” Jan 2024. Retrieved May 2025.
About Hannah McManus
Hannah, a Director with HVS Consulting & Valuation, leads the Saint Petersburg, Florida office. Hannah collaborates on and provides thoughtful insights for projects including hotel appraisals, market studies, portfolio valuations, and feasibility studies for proposed hotels, resorts, and mixed-use hospitality assets. A long-time resident of the West Coast Florida region, she offers expertise in leisure-driven and coastal Florida markets with a profound understanding of Florida assets. Hannah’s experience extends beyond Florida across a variety of markets in the Southeast and New England, including engagements in the greater New York City market. Contact Hannah at (410) 967-8879 or hmcmanus@hvs.com. Connect with Hannah on LinkedIn
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
Copyright BlazeThemes. 2023
