posted by orlandovacationhome on Dec 9
Given all the hoopla that often comes with a new hotel entering the metro Orlando market, we thought we would offer some thoughts different from our usual vacation home industry analysis. A friend of ours in Orlando wrote the following about the hotel industry. The parallels to the vacation home industry can also be drawn.
Some new larger hotels who entered the Orlando market as “newbies” went after the “convention market” and frowned upon regular theme park tourists as not being a viable market. Typically, a new hotel will learn within a year of opening they need to have a comprehensive business mix if they are to survive.
Many large convention hotels in the metro Orlando area are now experiencing significant declines in their “pick up rates”. Given the global recession, this is to be expected. But worse, some convention groups (i.e. many financial services companies) no longer exist. The Orlando CVB documents hotel room revenues dropping 30% +/- in November 2008 for the metro Orlando area. Orlando hotels who have never expereinced a big Orlando market downturn will now learn what it is all about.
The well seasoned and super efficient players such as Harris Rosen understand only too well how the Orlando game works. His world famous Rosen Hotels and Resorts operates debt free to make themselves recession proof even during dire times.
When business is slow, it is not uncommon for some upper level convention hotels to sell inventory for well under $100 a night through various distribution channels. For some newer hotels with debt levels at costs north of $100K (and in some cases more than $200K a room), this can be a devastating thought. Often, even under the best due diligence, failure to plan for economic recessions (on average every seven years) can be a rude awakening for both new hotel owners and their lenders alike.
If you are thinking of developing a hotel in the metro Orlando area, take several local hoteliers out to lunch first and get their opinion. You may also want to join some of the fantastic local hospitality organizations before you launch a project of any kind. Such simple things could be the best pre-investment you make. Relying on MBA type financial analysis by people who do not know the market at an intimate level is always a sure path to disaster.
Many of the plans to build new convention hotels in Orlando have now been shelved, but those that have opened in recent years or are about to open will soon understand why tourism experts in the area call Orlando a “unique market”. Good luck.
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posted by orlandovacationhome on Dec 5
Vacation home rentals in Kissimmee have stabilized the area along the US 192 corridor. It has been no secret that the southern arm of the Orlando Florida metropolitan area tourism market (otherwise known as Kissimmee) has struggled over the years to increase its share of the transient hotel market. One lone spot has been the increase in vacation home accomodations in the area.
Bankrupt hotels have been commonplace, and now more shockwaves are moving through the hotel industry in the US 192 corridor. The Orlando CVB recently reported that hotel revenue on the west side of US 192 was down as much as 52%+/- in November 2008 compared to last year. On the bright side, some of the better performing hotels are off much less, but still down roughly 15% according to our inquiries.
The one bright spot for Kissimmee (Osceola and Polk counties) over the years has been the explosion in popularity of the vacation home market over the last decade. Fortunately or unfortunately, depending on how you look at it, Orange County (“Orlando Proper”) has been slow to embrace the vacation home concept, and there are relatively few vacation complexes in this county.
Kissimmee vacation rentals offer an economically viable alternative to hotels for about the price of a typical hotel room with your own private pool in most instances. Such homes are suitable for many families, and even some groups visiting the Orlando area. Larger vacation homes can offer as many as seven bedrooms and can sleep as many as 16 +/- people. This has allowed many of the US 192 restaurants and businesses adjacent to the larger vacation home communities to stay afloat. For Kissimmee community reviews and ratings, please consult our blog posts area.
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posted by orlandovacationhome on Nov 11
If you are visiting Orlando Florida and looking for a vacation villa rental, there is great news. There is a huge oversupply of Orlando luxury vacation homes for rent. This means deals to be had abound for your Orlando vacation. For about the price of a mid-market hotel room, you can rent a fully equipped vacation villa home with your own private pool and do as much self-catering in a full kitchen as you like. This would certainly help you cut down on your dining and entertainment bills. Thousands of homes were built over the last ten years, and now many owners need to rent them. On any single night in Orlando, many of these homes sit empty.
Occupancies Dropping
In Orlando, the hotel industry will be the first to tell you their occupancies plunged in September 2008 over 2007, with room revenues dropping by as much 20-25%.
Many Owners Need to Rent
Many vacation homeowners are now feeling the pinch of the housing crisis, and many of the speculators who bought now need to generate additional income to the pay the mortgage.
What does this mean to you, the renter?
You need to rent through a good Orlando vacation home management company. Booking direct from an owner can be hazardous, as often they are from out of state, and if there is a problem, you are often on your own. Also, the Orlando villa could be in some stage of foreclosure and a good vacation home management company can make sure your villa is still available, clean and inspected the day you arrive.
- Shop around. There are thousands of Orlando villas and hundreds of vacation home rental management companies. Make sure you rent a good home, get a great deal and stay in a great location for your Orlando vacation.
- Always pay by credit card.
Orlando Vacation Homes - Great Deals for Renters!
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