B&B's, Guesthouses and Inns provide a highly personalized experience for Key West vacationers. For B&B owners and investors, each business component; Average Daily Rate, Occupancy Rate and Revenue Per Available Room (RevPAR) has produced steady and positive returns, regardless of shifts in the US/Global economy, additional big box hotel rooms, an increase in private-residence vacation rentals, VRBO and the like. In this Part One of a Two Part report, we'll look at the 2016 data for Key West B&B's, Guesthouses and Inns.
Information for this report is acquired from the Monroe County Tourist Development Counci (TDC). Annually, the TDC receives a report from the research firm STR Global (formerly Smith Travel Research) that details the information seen here as well as other data for hotels in Monroe County and South Florida. There are several reports worth reading on the TDC web site; including:
- Vacation Rentals Report - Illegal Rentals and Vacation Rental Scams
- International Visitors Report
- TDC Annual Report 2016
Average Daily Rate
The 2016 Average Daily Rate (ADR) of $256 was 0.7% below 2015; however, when compared to the Average Daily Rate of 2011, the 2016 Average Daily Rate of $256 is up 46%.
The winter months of February and March had ADR's above $300 (March highest at $322). The lowest ADR's were August and September, both around $200 per night.
Five months showed an increase and seven months showed a decrease.
Occupancy Rate
The 2016 average Occupancy Rate of 83% was nearly the same as 2015's rate of 85%. In 2011 the average Occupancy Rate was 82%. Since 2011, the highest average Occupancy Rate was 85% in 2015.
Only March had an Occupancy Rate above 90%. The months with the lowest Occupancy Rate were August, September and October at between 77% and 73%. July's 90% Occupancy Rate was the highest July reading recorded. No other month in 2016 had a higher year over year increase than July 2016 over July 2015.
Three months showed an increase and nine months showed a decrease.
Revenue Per Available Room - RevPAR
The 2016 average RevPAR for Key West B&B's and Guesthouses was $213. This figure was down 0.3% from 2015 but up 49% from 2011.
As expected, February and March had the highest RevPAR values and August and September had the lowest.
Three months showed an increase and nine months showed a decrease.
Though September continues as one of the weakest months, for 2016 it was the only month that showed increases in all three categories; Average Daily Rate (1.8%), Occupancy Rate (1.7%) and RevPAR (3.5%).
Conclusion
The Key West overnight market is separated into Luxury, Upscale, Midprice, Economy and Budget. In all three categories of ADR, Occupancy and RevPAR, Key West B&B's and Guesthouses fall between Upscale and Midprice (closer to Midprice than Upscale).
Therefore, for a slightly above Midprice cost, overnight guests can receive the personalized care and attention to detail of a well above Upscale experience. Sounds good to me!
In Part II of this report, we will look at the five B&B's and Guesthouses presently for sale in Key West.
If you have any comments or questions, please contact me here.
Good luck!
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