Although this blog focuses on vacation rentals in Orlando, we recognize that overall regional lodging demand does tend to move in a parallel direction. This is why the reference to the Orlando Marriott growth forecast is especially troubling for us. Based on our information, the local market had reached what we believed to be a turn for the positive at the end of 2010. we now re-assess whether growth in domestic travel and tourism will prevail throughout the year.
Marriott Hotels Chief Financial Officer Carl Berquist recently issued a rather downbeat assessment of Orlando and North American hotel demand for 2011. although international growth has met or exceeded expectations in 2011, Mr. Berquist specifically noted disappointing demand for group properties including those in Orlando. Marriott has numerous properties in the Orlando market. although the Marriott forecast deals mostly with the group market, it does point to a concern for continued growth for the entire Orlando lodging market. View the Marriott Hotels forecast.
One thing that was interesting to note from the Marriott forecast was the strong growth in international travel to Orlando . several months ago we blogged about the US Department of Commerce boosting international tourism growth forecasts for several years to come. In fact, double digit international arrival growth estimates are expected out to the year 2015.
And speaking of Orlando group travel, we extolled the benefits of vacation homes for small groups on a previous post. Vacation homes provide tremendous value for such groups with some homes offering 7 and 8 bedrooms sleeping upwards of 16 persons. Such homes can be of significant benefit to many sports teams, church groups, family reunions and other arrangements where luxury, privacy and household amenities are a necessity.
Vacation rentals in Orlando continue to gain traction against hotels in many market segments, and especially in the small group segment where value is so important.