Hotel usage up in Palm Beach County, down in other parts of the state

A new report by the American Hotel and Lodging Association (FRLA) and Kalibri Labs projects that Florida’s hotels will see 61% less business this year compared to 2019, while hotel usage in Palm Beach County was higher for part of this year than it was in July. The new report states that a reduction in business travel is leading to lower projected hotel revenue across the state this year.Hotels across the country are expected to end the year down 500,000 jobs compared to 2019. 2021 down nearly 500,000 jobs nationally compared to 2019. “Florida is a top destination for national and international business travel, and our hotels and restaurants rely on that revenue,” said Carol Dover, president and CEO of the FRLA. “While leisure travel returned this year – in some regions higher than even 2019’s record figures – business travel still remains down overall, and Florida is projected to end 2021 with the second-highest losses in the nation, behind only the state of California. We continue to advocate for hotel relief so that our industry can recover, support and employ our team members, and create those wonderful guest experiences we are known for worldwide.”Discover the Palm Beaches is a private organization contracted by Palm Beach County as the county’s official tourism marketing organization. The organization provided the following information about hotel usage in Palm Beach County this year:”The number of room nights sold in July 2021 was 378,000, selling 87% more than 2020 and 4.6% more than 2019. “In July 2021, The Palm Beaches had 3.5% share of room nights sold in Florida down from 3.7% in June. “Occupancy ended the month (July 2021) at 67.7% up 85% from 2020 and down 1.3% from 2019. “The average daily rate (ADR) in July 2021 was $177 up 35% from 2020 and 2019. Room night revenue was up 153% in July 2021, generating $66.9 million, up 41% from 2019.”Discover the Palm Beaches. reports that in July 2021, the county received more “bed tax” funds from hotels than any month ever on record. The number of rooms sold in July was also 4.6 % higher in the county than 2019, unlike other parts of the state.The “bed tax” which funds tourism projects including the Palm Beach County Convention Center, beach nourishment projects, sports stadiums, Discover the Palm Beaches, the Cultural Council for Palm Beach County, the Palm Beach County Sports Commission, and the Palm Beach County Film and Television Commission, is 6% per room in the county. Experts say part of the reason July was a record month for “bed tax” revenue is because the price of rooms in Palm Beach County has increased (see above). Waterstone Resort & Marina in Boca Raton is one of those places with higher room prices right now.”The demand is there,” said Stephanie Singleton, director of sales and marketing at Waterstone Resort & Marina. “People are wanting to travel. They’re comfortable coming to Florida and they want to be in this destination, so if the demand is there we are able to drive a little bit of higher rates during those periods.”She also says this summer turned out to be much better busier than expected, with the hotel having more than 90% occupancy on some weekend days.”Going into 2021 we honestly did not have as high of expectations as what happened. Summer months, we actually blew out as far as what our budget was concerned. We were expecting occupancy levels 50% and lower,” Singleton said.Tourism experts and hotel managers think the pent-up demand for travel, along with the reduction in international travel are leading to higher hotel usage in Palm Beach County when compared to other parts of the country and state. They also think the area’s unique qualities are a contributing factor.”We have more open spaces, smaller cities, less congestion, a healthier beach experience than most out there so that’s why Palm Beach County in particular, the Palm Beaches is doing so well,” said Jorge Pesquera, president and CEO of Discover the Palm Beaches.”I think it’s location,” Singleton said. “It’s harder to bring people to destinations where things aren’t open and you aren’t able to participate in outdoor activities.”Experts project hotel usage to go down for now but to pick back up after Thanksgiving, when the tourism season starts.

A new report by the American Hotel and Lodging Association (FRLA) and Kalibri Labs projects that Florida’s hotels will see 61% less business this year compared to 2019, while hotel usage in Palm Beach County was higher for part of this year than it was in July.

The new report states that a reduction in business travel is leading to lower projected hotel revenue across the state this year.

Hotels across the country are expected to end the year down 500,000 jobs compared to 2019. 2021 down nearly 500,000 jobs nationally compared to 2019.

“Florida is a top destination for national and international business travel, and our hotels and restaurants rely on that revenue,” said Carol Dover, president and CEO of the FRLA. “While leisure travel returned this year – in some regions higher than even 2019’s record figures – business travel still remains down overall, and Florida is projected to end 2021 with the second-highest losses in the nation, behind only the state of California. We continue to advocate for hotel relief so that our industry can recover, support and employ our team members, and create those wonderful guest experiences we are known for worldwide.”

Discover the Palm Beaches is a private organization contracted by Palm Beach County as the county’s official tourism marketing organization. The organization provided the following information about hotel usage in Palm Beach County this year:

  • “The number of room nights sold in July 2021 was 378,000, selling 87% more than 2020 and 4.6% more than 2019.
  • “In July 2021, The Palm Beaches had 3.5% share of room nights sold in Florida down from 3.7% in June.
  • “Occupancy ended the month (July 2021) at 67.7% up 85% from 2020 and down 1.3% from 2019.
  • “The average daily rate (ADR) in July 2021 was $177 up 35% from 2020 and 2019.
  • Room night revenue was up 153% in July 2021, generating $66.9 million, up 41% from 2019.”

Discover the Palm Beaches. reports that in July 2021, the county received more “bed tax” funds from hotels than any month ever on record. The number of rooms sold in July was also 4.6 % higher in the county than 2019, unlike other parts of the state.

The “bed tax” which funds tourism projects including the Palm Beach County Convention Center, beach nourishment projects, sports stadiums, Discover the Palm Beaches, the Cultural Council for Palm Beach County, the Palm Beach County Sports Commission, and the Palm Beach County Film and Television Commission, is 6% per room in the county. Experts say part of the reason July was a record month for “bed tax” revenue is because the price of rooms in Palm Beach County has increased (see above).

Waterstone Resort & Marina in Boca Raton is one of those places with higher room prices right now.

“The demand is there,” said Stephanie Singleton, director of sales and marketing at Waterstone Resort & Marina. “People are wanting to travel. They’re comfortable coming to Florida and they want to be in this destination, so if the demand is there we are able to drive a little bit of higher rates during those periods.”

She also says this summer turned out to be much better busier than expected, with the hotel having more than 90% occupancy on some weekend days.

“Going into 2021 we honestly did not have as high of expectations as what happened. Summer months, we actually blew out as far as what our budget was concerned. We were expecting occupancy levels 50% and lower,” Singleton said.

Tourism experts and hotel managers think the pent-up demand for travel, along with the reduction in international travel are leading to higher hotel usage in Palm Beach County when compared to other parts of the country and state. They also think the area’s unique qualities are a contributing factor.

“We have more open spaces, smaller cities, less congestion, a healthier beach experience than most out there so that’s why Palm Beach County in particular, the Palm Beaches is doing so well,” said Jorge Pesquera, president and CEO of Discover the Palm Beaches.

“I think it’s location,” Singleton said. “It’s harder to bring people to destinations where things aren’t open and you aren’t able to participate in outdoor activities.”

Experts project hotel usage to go down for now but to pick back up after Thanksgiving, when the tourism season starts.