Berkadia - Florida Market Report April 2022 by Berkadia

HOTEL INDIGO SARASOTA

SPRINGHILL SUITES PANAMA CITY BEACH

BILTMORE HOTEL CORAL GABLES

FL KEYS VACATION RENTALS

FLORIDA HOTEL MARKET REPORT APRIL 2022

TABLE OF CONTENTS

Executive Summary.........................................04 Lodging Market Overview...............................14 Market Deep Dives Miami............................................................... 22 Orlando.............................................................38 Tampa Bay........................................................ 52 Florida Keys/Florida Panhandle/Jacksonville.........66

THE CURRENT, AUTOGRAPH COLLECTION 2021 Sale Represented by Berkadia

EXECUTIVE SUMMARY Berkadia Hotels & Hospitality is pleased to present our 1Q 2022 Hotel Market Report for the state of Florida, a comprehensive dive into the one of the strongest, most resilient lodging markets in the country. The Sunshine State is the 3rd most-populous state in the United States with a growing population of 22 million residents. Known for its excellent year-round weather, booming tourism industry, business-friendly environment, and accessibility to Europe, the Caribbean, and South America via its modern airports and seaports, the state of Florida has thrived since the onset of the pandemic. A mass-exodus of residents f rom regulation-heavy Northeast and Midwest states caused Florida’s population to boom in 2021 due to the state’s open for business approach to the pandemic. An existential shift towards leisure within the lodging industry contributed to one of the best summers for Florida beaches ever. Florida and California led the country in lodging transaction volume in 2021 cementing the state as a top target market among institutional investors. A new corporate relocation was announced seemingly every week with the likes of Microsoft, Blackstone, and ArkInvest making signif icant investments in Florida. These catalytic factors will continue to drive Florida lodging performance in the years to come.

SpringHill Suites Panama City Beach 2021 Sale Represented by Berkadia

The Florida Berkadia Hotel Team has nine dedicated hotel investment sales and mortgage banking advisers located across Miami, Orlando, and Tampa. The team closed in excess of $500 million of hotel transaction volume in 2021 and currently has seventeen deals in the market worth over $900 million.

Preston Reid

Kyle Stevenson

Michael Weinberg

Managing Director

813.675.0113 preston.reid@berkadia.com

786.646.2591 kyle.stevenson@berkadia.com

321.319.1419 michael.weinberg@berkadia.com

Wyatt Krapf

Mabelle Perez

Senior Director

Director

484.356.8197 wyatt.krapf@berkadia.com

786.646.2587 mabelle.perez@berkadia.com

#1 STATE

122 MILLION

RESIDENTS

FOR DOMESTIC IN-MIGRATION IN 2021

VISITORS IN 2021

42%

$6.9 BILLION

REVPAR PREMIUM OVER NATIONAL AVERAGE IN 2021

IN HOTEL TRANSACTION VOLUME IN 2021

22 MILLION

5.4% YEAR-OVER-YEAR LABOR FORCE GROWTH (compared to 0.8% nationally)

FLORIDA MARKET REPORT

Population In-Migration & Changing Demographics The state of Florida ranked #1 in the country for domestic migration in 2021 netting 220,000 new residents relocating from across the United States (census.gov) rising to its highest level since the 1970s. According to state projections, in-migration is projected to continue with an average of 845 new residents moving to Florida per day until at least 2025 with long-term forecasts projecting the state’s population to reach 26.3 million by 2040. Taking into account natural decrease, the state posted the 2nd highest year-over-year population increase in the country from July 1, 2020 – July 1, 2021 growing by 211,000 residents trailing only Texas. According to U-Haul’s 2021 Growth Index report, 10 of the 25 fastest growing cities in the country are in Florida. Wendy Kallergis, President and CEO for the Greater Miami and the Beaches Hotel Association, pointed out that “…people are driving here [as opposed to flying]…because they’re doing longer stays…they’re setting up shop here and working in their hotel rooms or suites.” The remote working trend has not only benefited hotel performance, particularly on Thursdays and Sundays, which have historically been slow days in the lodging industry but also contributed to Florida’s population growth. As reported by local media outlets more anecdotally, many people who travelled to Florida to work temporarily through the pandemic had such a positive experience that they kept extending their stays indefinitely until ultimately deciding to make Florida their permanent residence.

Population % Change 2010-2020

20%

16.2% 15%

15.3% 10.9%

10%

10.3% 5.4%

0% Texas

Florida

-5% 1.5%

North Carolina

Georgia

California

New York

-0.3%

Illinois

-2.0%

Population Population% %Change Change2019-2020 2019-2020 1.3%

1.2%

1.1%

1.0%

0.9%

0.5% 0.0% Texas

Florida

-0.5% -1.0%

North Carolina

Georgia

California

-0.4% Source: US Census Bureau

New York

Illinois

-0.6%

-0.7%

9 of the top 10 fastest growing places in the US according to US News are all in Florida - Top 25 fastest growing places in the US 2021 US News

MIAMI WAS

THE SHARE OF

TAMPA BAY

THE MOST POPULAR

PEOPLE MOVING TO

METRO RANKS AMONG

MIGRATION

FLORIDA FROM SAN

TOP 5 RELOCATION

DESTINATION OF ANY

FRANCISCO ROSE BY A

DESTINATIONS

MAJOR U.S. METRO

WHOPPING 46.2%

OF 2021

REDFIN REPORT DEC 2021

BUSINESS INSIDER APR 2021

TAMPA BAY BUSINESS JOURNAL DEC 2021

Fastest Growing Places in the U.S. 2021-2022 1. Myrtle Beach, SC 2. Sarasota, FL 3. Fort Myers, FL 4. Naples, FL 5. Lakeland, FL 6. Ocala, FL 7. Daytona Beach, FL 8. Port St. Lucie, FL 9. Orlando, FL 10. Melbourne, FL

FLORIDA MARKET REPORT

Corporate Relocations & Diversity Due to the low-tax, business-friendly environment, and strong state incentives, Florida has experienced an influx of major corporate relocations as outlined in the below chart. In stretched labor markets with competition for talent at an all-time high, companies are rethinking the value and lifestyle proposition they’re able to offer current and future employees. No state income taxes, affordable cost-of-living, and competitive wages have allowed the state to poach talent from high-cost, gateway markets. An active lifestyle close to the beach with the typical offerings of an urban environment have always made the state attractive, which remains unchanged. Additionally, with Fortune 500 companies facing increased pressure to hire diverse workforces, Florida offers employers a talented, diverse labor pool as the 8th most diverse state in the country with a diversity score of 68.2 (worldpopulationreview.com). The Global Business Travel Association predicts a 36% year-over-year increase in business travel in 2022 with full recovery of business travel by the end of 2024. Florida’s superior job growth and staggering number of corporate relocations should help the state beat this timeline. In addition, these demand drivers will generate a healthier, overall corporate landscape allowing for Florida corporate lodging demand to rebound faster than other major metropolitan areas. Lastly, the state’s labor force increased by 5.4% year-overyear in stark contrast to the 0.8% growth seen nationally.

TAMPA & MIAMI RANKED 1ST AND 2ND TOP EMERGING US TECH HUBS 2021

PANDEMIC TURN’S FLORIDA’S WEST PALM BEACH INTO OFFICE BOOMTOWN

FORBES

WSJ, DEC 2021

Tampa Bay Corporate Economic Announcements Company Name

Location

Type

From

St. Petersburg

HQ Relocation

New York, NY

Ark Invest

Branch

Tampa

Expansion

Minneapolis, MN

CodeBoxx Technology

Tampa

HQ Relocation

Montreal, Canada

CrossBorder Solutions

Tampa

Corporate HQ Relocation

New York, NY

Fast

Tampa

East Coast Hub

San Francisco, CA

Fisher Investments

Tampa

Expansion

Camas, WA

Genesis Systems

Tampa

HQ Relocation

Kansas City, MI

HSP Group

Tampa

First Office/HQ

Naples, FL

ID.me

Tampa

Second Office

McClean, VA

Madison Cloud

St. Petersburg

HQ Relocation

Baltimore, MD

MRA Capital Partners

Tampa

HQ Relocation

Parsippany, NJ

Pfizer

Tampa

Multifunctional Hub

New York, NY

Procoto

Tampa

Corporate HQ Relocation

Atlanta, GA

QuoteWizard

Tampa

First US East Coast Office

Seattle, WA

RabbitRun

St. Petersburg

Corporate HQ Relocation

Toronto, Canada

Signode Industrial Group

Tampa

Corporate HQ Relocation

Chicago, IL

Suzuki Marine USA

Tampa

Subsidiary HQ

Brea, CA

TrustLayer

Tampa

Corporate HQ Relocation

Sillicon Valley, CA

Orlando Corporate Economic Announcements 1

Checkr Inc.

Orlando

Major Office Relocation

San Francisco, CA

Disney

Orlando

Expansion

Burbank, CA

KPMG

Orlando

Major Office Relocation

New York, NY

Sonesta International Hotels

Orlando

New-to-market expansion

Newton, MA

South Florida Corporate Economic Announcements 1

Atomic

Wynwood

HQ Relocation

San Francisco, CA

Balyasny Asset Management

Miami

New-to-market expansion

Chicago, IL

Blackstone

Miami

New-to-market expansion

New York, NY

Blockchain.com

Miami

HQ Relocation

New York, NY

CI Financial

Miami

New-to-market expansion

Toronto, Canada

Citadel

Miami

Major Office Relocation

Chicago, IL

Elliott Management

West Palm Beach

HQ Relocation

New York, NY

Founders Fund

Wynwood

HQ Relocation

San Francisco, CA

Icahn Enterprises

Sunny Isles

HQ Relocation

New York, NY

Jet Blue

Ft. Lauderdale

HQ Relocation

Long Island City, NY

Live Nation

Wynwood

Expansion

Beverly Hills, CA

Microsoft

Miami

Expansion

Redmond, WA

New Day USA

West Palm Beach

New-to-market expansion

Fulton, MD

Point72 Asset Management

West Palm Beach

New-to-market expansion

Stamford, CT

Red 6

Miami

HQ Relocation

Santa Monica, CA

Spotify

Wynwood

Expansion

New York, NY

Starwood Capital Group

Miami Beach

HQ Relocation

Greenwich, CT

Subway

Miami

HQ Relocation

Milford, CT

Teal

Miami

HQ Relocation

New York, NY

Thomas Bravo

Miami

New-to-market expansion

Chicago, IL

FLORIDA MARKET REPORT

Tourism In Florida, travel & tourism is a critical driver of economic activity, representing about 10% of the state GDP and supporting nearly 13% of total employment. Florida’s tourism economy largely rebounded from its 2020 low following the vaccine roll out during the first half of 2021. The region’s white sand beaches, warm year-round weather, and robust tourism infrastructure attracted visitors as drive-to-leisure destinations were deemed more attractive by travelers due to social distancing recommendations and travel restrictions. Florida welcomed an estimated 122.3M visitors in 2021 just below the 2019 record of 131.1M visitors solely due to a slow first quarter. In both Q3 and Q4, Florida tallied more visitors than the same period in 2019. (VisitFlorida.org). The number of domestic travelers visiting the state increased, while international travel lagged. In 2022, the ratio of domestic and international travelers should normalize along with the reactivation of the cruise industry making a strong case for a record-setting 2022.

Factors that Attract Companies to Florida

Business Friendly

Tax Benefits

Lower Real Estate Costs

Lower Cost of Living

LATAM Connection

Bilingual Workforce

Culturally Diverse Talent Pool

Warm YearRound Weather

Florida Annual Annual Visitors Florida Visitors

Visitors (Millions)

150 120 90 60 30 0

2016

2017

2018

2019

Domestic

2020

2021

International

Pre-Pandemic Tourism Spending Trend Trend($($Billions) Pre-Pandemic TourismVisitor Visitor Spending Billion) $100 $80 $60

$84.4

$86.1

$88.6

$94.1

$98.8

$81.8

$20

$79.9

$40

2013

2014

2015

2016

2017

2018

2019

2019 SpendingbybyCategory Category 2019Total Total Visitor Visitor Spending 13% 29%

Total $98.8 Billion

16%

20%

Lodging Food & Beverage Transportation Shopping & Retail Enterteinment & Recreation

22% FLORIDA MARKET REPORT

2019 Tourism Performance and Economic Impact by Region NORTHWEST Spending

$10.2 Billion

Jobs

153,000

Value Added

$6.9 Billion

Wages

$4.0 Billion

CENTRAL

NORTHEAST Spending

Spending

$4.6 Billion

Jobs

69,000

Value Added

$3.4 Billion

Wages

$2.1 Billion

$38.6 Billion 578,000

Value Added

$31.3 Billion

Wages

$19.0 Billion

NORTHWEST CENTRAL EAST NORTHEAST

Spending

NORTH CENTRAL

Jobs

NORTH CENTRAL Spending

Total Visitor Spending by Region

Jobs

Less than $5.0 Billion

$1.6 Billion

Wages

$919 Million

Spending

7.5 to $9.9 Billion

Jobs

10.0 to $29.9 Billion Greater than $30.0 Billion 50

$4.2 Billion

Wages

$2.6 Billion

39,000

Value Added

CENTRAL WEST

CENTRAL

300

CENTRAL EAST

$9.9 Billion 156,000

Value Added

$8.1 Billion

Wages

$4.8 Billion

SOUTHWEST

Miles

SOUTHWEST Spending Jobs Region

Spending Growth

Spending

Central

3.3%

38.6 Billion

Central East

4.3%

6.3 Billion

Central West

6.1%

9.9 Billion

North Central

5.7%

2.6 Billion

Northeast

3.5%

4.6 Billion

Northwest

5.3%

10.2 Billion

Southeast

3.5%

35.1 Billion

Southwest

5.1%

11.7 Billion

Source: Rockport Analytics

$11.7 Billion SOUTHEAST

158,000

Value Added

$8.9 Billion

Wages

$5.4 Billion SOUTHEAST Spending

High

Low

Jobs

94,000

Value Added

CENTRAL WEST

5.0 to $7.49 Billion

$2.6 Billion

$6.3 Billion

$35.1 Billion 494,000

Value Added

$29.5 Billion

Wages

$17.6 Billion

Travel Recovery For Florida, the pandemic created a unique opportunity to boost its domestic traveler market share capitalizing on global travel restrictions and decreased competition from Europe and the Caribbean. Florida maintained an open-door policy and marketed to tourists across the nation with hotels reaping the benefits. Thus, Miami and Tampa were among the top performing hotel markets throughout 2021. Despite a dramatic drop in total number of visitors in 2020 of close to 40%, 2021 enjoyed a strong rebound:

• • •

Visitor numbers rose by 148% from the previous year and reached 87% of 2019 levels during first half of 2021. By September 2021, the number of visitors travelling to the sunshine state had already surpassed the 2020 total by over 15%. During Q4 2021, Florida welcomed 30.9M visitors eclipsing the 2019 Q4 mark. 94% of Q4 visitors were domestic with 96% domestic on the year. Once International travel comes back; visitation numbers will be up and to the right.

Year end 2021 traveler data from VisitFlorida.org shows that over 122M people visited the state during the last year. Despite the pandemic’s negative effect, traveler visitation rebounded to just 7% short of the 2019 records. This is a strong recovery for the market given that international traveler numbers remained considerably suppressed, 67% below 2019 levels. With domestic travel making up for the slower-to-recover international travel, 2022 should easily surpass pre-pandemic travel in conjunction with international and corporate travel returning. In contrast, New York and California are not expected to see inbound travel fully recover until 2024 or 2025.

Major Florida Airports Historical Performance Airport

2019

2020

2021

'20 - '21

'19 - '21

Orlando International

50,613,072

19,999,356

40,351,068

102%

-20%

Miami

45,924,466

18,663,858

37,302,456

100%

-19%

Fort Lauderdale

36,747,622

16,484,132

29,205,002

77%

-21%

Tampa

22,497,953

10,238,151

18,115,213

77%

-19%

Fort Myers

10,225,180

5,978,414

10,322,434

73%

Palm Beach

6,899,919

1,548,473

5,260,748

240%

-24%

3,291,112

1,545,041

2,396,108

55%

-27%

2,288,692

1,394,573

1,660,497

19%

-27%

178,488,016

75,851,998

144,613,526

91%

-19%

Orlando Sanford St. Petersburg-Clearwater Total

FLORIDA MARKET REPORT

LODGING MARKET OVERVIEW

FLORIDA MARKET REPORT

2022 Outlook: Florida RevPAR Will Hit All-Time Highs According to CoStar’s latest national lodging market outlook, ADR is expected to surpass prepandemic levels in 2022, while RevPAR is not anticipated to exceed 2019 levels until 2023. Florida Hospitality is the exception which has recovered disproportionately faster than the rest of the country. While 2021 occupancy in Florida was still down 10.1% compared to 2019, ADR was up 9.3%, blending to a RevPAR that is a mere 2% off all-time highs. Per the below chart, every market in the state exceeded 2019 RevPAR levels in 2021 except for Orlando, which through the better part of 2021 dragged the state’s overall performance due to its dependence on theme park and convention business. However, the Orlando market posted trailing 3-month (November 21-January 2022) RevPAR of $87, which is 91% of 2019 levels, demonstrating an inflection point for the market. Additionally, the 50th Anniversary of Walt Disney World Orlando in 2022 positions the market for an explosive recovery. Some exemplary markets are the Florida Panhandle, which according to hotel owners had their best summers ever contributing to 15% RevPAR increase over 2019 levels. The Florida Keys’ RevPAR was up 46.5% when compared to 2019 and is now the best performing market in the country. Assuming a continuation of 2021 performance for the rest of the Florida markets and elevated performance for the Orlando market, Florida’s lodging market should achieve a new high watermark for RevPAR in 2022.

OCCUPANCY Miami Tampa Orlando Florida Keys Jacksonville Panhandle Florida Total US

2018

2019

2020

2021

'18-'19

'19-'20

'20-'21

'19-'21

76.6% 71.1% 77.6% 76.6% 72.1% 65.5% 72.7% 66.1%

75.9% 72.2% 76.1% 75.9% 71.1% 65.7% 72.0% 65.9%

46.3% 50.9% 41.7% 58.6% 53.1% 51.6% 48.2% 44.0%

66.8% 68.4% 57.8% 78.9% 69.2% 64.2% 64.7% 57.6%

-0.9% 1.5% -1.9% -0.9% -1.4% 0.3% -1.0% -0.3%

-39.0% -29.5% -45.2% -22.8% -25.3% -21.5% -33.1% -33.2%

44.3% 34.4% 38.6% 34.6% 30.3% 24.4% 34.2% 30.9%

-12.0% -5.3% -24.0% 4.0% -2.7% -2.3% -10.1% -12.6%

2018

2019

2020

2021

'18-'19

'19-'20

'20-'21

'19-'21

$197.9 $129.8 $125.8 $266.5 $114.7 $126.0 $142.7 $129.6

$194.8 $132.0 $126.7 $276.4 $116.7 $132.3 $143.8 $131.0

$185.6 $116.8 $110.3 $281.6 $101.1 $118.9 $131.0 $103.3

$223.5 $139.9 $121.4 $389.5 $123.0 $155.7 $157.2 $124.7

-1.6% 1.6% 0.8% 3.7% 1.7% 5.0% 0.8% 1.1%

-4.7% -11.5% -13.0% 1.9% -13.4% -10.1% -8.9% -21.1%

20.4% 19.7% 10.1% 38.3% 21.7% 30.9% 20.0% 20.7%

14.7% 6.0% -4.2% 40.9% 5.4% 17.8% 9.3% -4.8%

2018

2019

2020

2021

'18-'19

'19-'20

'20-'21

'19-'21

$151.6 $92.3 $97.6 $204.1 $82.7 $82.5 $103.7 $85.7

$147.8 $95.3 $96.4 $209.8 $83.0 $86.9 $103.5 $86.3

$85.9 $59.5 $46.0 $165.0 $53.7 $61.4 $63.1 $45.5

$149.3 $95.7 $70.2 $307.3 $85.1 $100.0 $101.7 $71.8

-2.5% 3.2% -1.2% 2.8% 0.3% 5.3% -0.2% 0.8%

-41.9% -37.6% -52.3% -21.3% -35.3% -29.4% -39.0% -47.3%

73.8% 60.9% 52.6% 86.2% 58.5% 62.9% 61.1% 58.0%

1.0% 0.4% -27.2% 46.5% 2.5% 15.1% -1.7% -16.8%

ADR Miami Tampa Orlando Florida Keys Jacksonville Panhandle Florida Total US

REVPAR Miami Tampa Orlando Florida Keys Jacksonville Panhandle Florida Total US

Resiliency of Florida Market Florida has proven to be one of the most resilient hospitality markets in the country throughout COVID. While the average RevPAR in the United States is still down 16.8% compared to 2019, Florida is only down 1.7% Once occupancy returns, Florida hotels are set to outperform the rest of the country, increasing RevPAR penetration even further. Florida markets are fortunate to benefit from three main resiliency drivers that have driven this exceptional performance: leisure travel, drive-to-markets, and a fast reopening.

US vs Florida RevPAR Comparison $120

39%

42%

40%

$100 $80 $60

35% 30%

21%

25%

20%

2018

2019 Total US RevPAR

2020 Florida RevPAR

$102

$72

$63

$45

$104

$86

$104

15%

$86

$40 $20

45%

2021

10% 5% 0%

Difference

Every major Florida market experienced positive RevPAR growth from 2019 to 2021 besides Orlando

State of Florida sees -1.7% RevPAR growth from 2019-2021 compared to -16.8% national average

TTM RevPAR as of February 2022 has eclipsed same period 2019 FLORIDA MARKET REPORT

Tranquility Bay Beachfront Hotel & Resort January 2022 Sale: $62,300,000

Leisure Travel As recently noted by CoStar’s SVP of Consulting & Analytics, investors are “looking to keep in mind…the existential shift toward leisure.” Leisure RevPAR growth has consistently outperformed business since June 2020. Home to 189 official beaches across Florida’s 1,350 miles coastline and The Most Magical Place On Earth, Florida has an abundance of reasons for guests to visit on vacation. Furthermore, many of Florida’s attractions are designed for Lodging Sector Update - March 16, 2022 socially distant activities: watersports, boating, outdoor dining, and beachfront relaxing have never been10more

attractive to visitors who want to maintain safe practices.

Leisure Travel Outperforming

While new variants put downward pressure on business travel exemplified by the Delta and Omicron variants, Mind the Gap: While business and leisure performed similarly poorly at the start of the pandemic, leisure these outbreaks have affectedoutperformed leisure travel the same between variants and lodging RevPAR growth has not consistently business sinceway. JuneThe '20.relationship This gap should gradually close going

forward asisbusiness travelincomes out ofbelow: hibernation. performance evidenced the chart

RevPAR Change (Current vs. '19) - Leisure vs. Business * (trailing 4-week average)

40%

Performance Gap Should Narrow as Recovery Unfolds

20%

Leisure Minus Business -20%

-40%

Leisure Business

-60%

-80%

Rising Covid cases due to the Delta & Omicron variants temporarily put the recovery of business travel on pause at various times recently (i.e., renewed corporate travel restrictions).

-100%

Source: STR

* Business = Mon, Tues, Wed, Thurs; Leisure = Fri, Sat, Sun.; represents total U.S. performance

Use of this report is subject to the Terms of Use listed at the end of the report

Drive-to-Markets

Lodging Sector Update - March 16, 2022

Air Travel Recovery, cont.

Similarly to how preferences have changed as to where people vacation, the means for how they get there

Flights to Nights: The conversion of flight activity into hotel stays helps to measure the distribution of lodging demand. A lower ratio relative to pre-Covid trends makes sense given the recent outperformance of "drive-to" lower ratio(e.g., relative to pre-Covid trends suburban shows thehotels, increase demand foras“drive-to” locations for leisure as well locations continental U.S. resorts, small markets) well as subdued corporate travel in as subdued corporate travel in difficult major urban markets. major urban markets. While to paint with a broad brush, the future conversion of air travel into hotel stays may offer clues regarding a negative secular impact to business travel in urban locations. have also changed. The below graph shows the relationship between flight activity and lodging demand; a

Propensity of Flyers to Utilize Hotels Total U.S. Rooms Sold (LHS)

TSA Throughput (LHS)

Ratio (RHS)*

Pre-Covid Ratio (RHS)*

125M

100%

100M

80%

75M

60%

50M

40%

25M

20%

Jan-21

Feb-21

Sources: TSA, STR, Green Street

Mar-21

Apr-21

May-21

Jun-21

Jul-21

Aug-21

Sep-21

Oct-21

Nov-21

Dec-21

Jan-22

* Ratio: TSA Throughput / Total U.S. Rooms Sold

189 Beaches

2022: Walt Disney World's 50th Anniversary

30.9M visitors in Q4 of 2021 outpacing same period 2019 FLORIDA MARKET REPORT

Reopening the State Drove Hospitality Performance Florida was one of the first states to lift restrictions on travel and closure mandates in the country, which has supported hospitality in the state as visitors flock from dense urban environments to avoid contracting the virus or stringent shelter-in-place restrictions. Florida’s reopening plan was divided into three phases. The first phase began on May 4th, 2020 with a partial reopening. This included restaurants, retail businesses, and sport venues opening with social distancing restrictions. Florida entered phase two on June 5th, 2020, and allowed for bars and entertainment businesses to open - all while many other states had not even allowed indoor seating at restaurants. Finally, Phase 3 started on September 25th, 2020, and allowed for nearly the full reopening of the state, including theme parks. To put this into perspective, California did not reopen until nearly 9 months later, in June 2021. Additionally, the state never enforced vaccine mandates and marketed itself to vacationers across the country that they are welcome in Florida. With the return of international travel, there will be no let down in lodging demand in 2022.

Florida Was One of The First States To Re-Open in 2020

Map is as of 5/5/2020 Source: State Officials, New York Times, Yahoo Finance

Transaction Volume The Florida Hospitality Capital Markets picked up drastically after Q1 2021. For the full year of 2021, nearly $6.9 billion of hotel product transacted in Florida, an incredible 600% increase f rom 2020 where total transaction volume was $960 million. Only California exceeded Florida in total hotel 2021 transaction volume. Furthermore, more hotel volume transacted in 2021 than 2019 by over 45%. Pent up demand for hospitality exposure, large amounts of liquidity chasing limited deals, and evidence that Florida markets were performing similarly to pre-COVID levels drove the spike in transaction volume particularly in the latter half of 2021.

Florida Hospitality Sales Volume ($)

Source: Real Capital Analytics

320

HOTELS

40,000 KEYS

$6.9B

IN TRANSACTION VOLUME

8.1%

AVERAGE CAP RATE Source: Real Capital Analytics

FLORIDA MARKET REPORT

MARKET DEEP DIVES MIAMI

FLORIDA MARKET REPORT

Market Deep Dive - South Florida As the Sunshine State’s economic and cultural center and a major national port of entry from South America, Central America, The Caribbean and Europe, the greater Miami area continues to cement its position as an international hub for business, commerce, and tourism. Over the past five years, the MSAs economy has outperformed the national average, a trend that has been put into overdrive due to the pandemic. Miami and its broader MSA’s dynamic and energetic lifestyle contribute to this growth, offering high-end shopping, a vibrant nightlife, abundant sunshine, and miles of world-renowned, white-sand beaches.

OCTOBER 2021 SALE

$152,000,000

In addition to numerous Fortune 500 companies, South Florida has attracted a wide range of businesses that seek to leverage the region’s business-friendly environment, talent pool and thriving international community. During the second half of 2020 and throughout 2021, the pandemic boosted a mass migration of corporate business, start-ups, and top-tier talent from other major business and tech hubs in the country. Additionally, and fueled in part by more relaxed Covid-19 restrictions, Miami experienced an influx of food & beverage and entertainment concepts by renowned hospitality professionals, that helped drive the hype for Miami as the place to be – or visit. These trends have positively impacted Miami’s hospitality sector and the greater MSA. RevPAR in Miami exceeded pre-pandemic levels by over 30% throughout the 2H of 2021, making it the top performing RevPAR market of the largest 25 hotel markets during 2021, according to STR.

FLORIDA MARKET REPORT

Miami: #1 RevPAR Market in the U.S.

$149 YE 2021 REVPAR

ADR 14.7% ABOVE 2019 (YE 2021)

66.8% OCCUPANCY

19% ABOVE 2ND RANKED OAHU ISLAND, HI

LARGEST ADR INCREASE WHEN COMPARED TO 2019

RANKED 2ND BEHIND TAMPA, FL

Miami’s Growing Tech Sector – The Next Silicon Valley?

BUDDING MECCA FOR VENTURE CAPITALISTS AND STARTUP FOUNDERS 12,000+ NEW TECH JOBS IN THE REGION UP 72% YEAR OVER YEAR 10 MILLION+ FUNDING ON SERIES A ROUNDS BECOMING ALMOST COMMONPLACE IN 2021 SOUTH FLORIDA STARTUPS ATTRACTED RECORD VENTURE CAPITAL INVESTMENTS IN 2021 $2.4 BILLION BY SEPT ‘21

Series A&BFunding Funding inin Florida Series A&B Florida $1,500

$1,200

53 46

$900

$1,380

$600

$300

30 $270

$289

$385 $203

$277

0 2016

2017

2018 Amount ($Ms)

2019

2020

2021

Number of Deals

Source: Crunchbase.com (YTD Oct 2021)

FLORIDA MARKET REPORT

Crypto Capital of the World •

The annual Bitcoin Conference relocated to Miami

•

Miami’s most iconic sports venue is now named FTX Arena, after the crypto company

•

Rebranding Miami as the “cryptocurrency capital

•

Influx of Crypto companies relocating or

of the world.”

expanding in South Florida

Capital

Element Miami Airport 2022 Sale & Financing Represented by Berkadia

Miami International Airport #1 International Terminal in the US •

In 2021 MIA became the #1 International terminal in the

•

Miami International Airport (MIA) moved 2.7 million tons

US – overtaking NY’s JFK and LAX

of cargo in 2021, surpassing the previous record of 2.3 million tons in 2020, this represents a 17% increase for the second consecutive year.

•

In November 2021 MIA recorded more travelers than the

•

November and December 2021 saw the two busiest

•

same time period in 2019

days in its history - more than 163,000 passengers per day. During 2021, major airlines debuted new operations at MIA:

Airlines 39 New Routes

19 New Routes

Airlines 14 Daily Flights

12 Daily Flights

Seattle to Miami Daily Flight (Starting 2022)

FLORIDA MARKET REPORT

Miami International AnnualPassengers Passengers Miami InternationalAirport Airport Annual 50,000,000 45,000,000

37,302,456

40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

MIA Travelers MIAInternational International Travelers 2,500,000

100%

2,000,000

80%

1,500,000

60%

1,000,000

4 0%

500,000

20%

0% Jan

Feb

Mar

Apr

May 2019

Jun

Jul

2021

Aug

Sep

Oct

Nov

Dec

% of 2019

MIADomestic Domestic Travelers MIA Travelers

3,000,000

150%

2,500,000

125%

2,000,000

100%

1,500,000

7 5%

1,000,000

50%

500,000

25% 0%

Jan

Feb

Mar

Apr

May 2019

Jun 2021

Jul

Aug % of 2019

Sep

Oct

Nov

Dec

Miami: Latin America’s Most Northerly City •

$1 billion in annual economic impact from major employer relocations and expansion

•

Gateway to Latin America and the Caribbean – connecting US Business to LATAM

Cruise Capital of the World PortMiami: busiest cruise port in the world - 5.5 million passengers (2019) Port Everglades (Ft. Lauderdale) ranked 3rd - 3.8 million passengers (2019) Annual economic impact of $7 billion in Miami-Dade alone (pre COVID-19) Cruise companies expect 100% of their fleets to be operational by summer 2022 230 cruise ships are expected to set sail in February 2022 - Cruise Industry News Since the onset of the pandemic PortMiami has seen over $1.2 Billion invested into its expansion and new cruise terminals:

•

$335 million container terminal expansion

•

Norwegian Cruise Lines Terminal – $215 Million (2021)

•

Virgin Voyages Palm Grove Terminal -$159 million terminal (2022)

•

Carnival Cruise Line terminal expansion - $121 million (2022)

•

MSC Mega Terminal - $450 million (2023) FLORIDA MARKET REPORT

Miami Major Events As a renowned global leisure destination, South Florida is home to a wide range of travelers from every corner of the world.

$500 million economic impact 12,000 room nights

$400 million expected economic impact 35,000 hotel room nights

$168 Million in economic impact

$34 million in economic impact

$390 million in economic impact

$165 million economic impact 170,000+ hotel room nights

$50 million in economic impact

major international cultural events that attract

Notable Miami Developments

FLORIDA MARKET REPORT

Market Performance Miami’s incredible market performance during 2021 was largely fueled by pent-up leisure demand, ability to remote work, and the ability to offer domestic vacationers an international experience. During the first half of 2021 the market experienced an explosive recovery from leisure travelers which allowed the market to record higher ADR than in 2019. While occupancy is down 12% compared to 2019, Miami’s 15% ADR increase over 2019 elevated RevPAR to its highest point since 2018.

2013

2014

2015 ADR

2016

2017 RevPAR

2018

2019

2020

Occupancy (%)

$149

$223

$86

$186

$148

$195

$152

$198

$143

$187

20% $143

$60 $189

40%

$151

$120

$195

60%

$143

$180

$184

80%

$134

$240

$173

ADR / RevPAR

Top Line Metrics - YE 2021 Miami Lodging Performance

2021

Occupancy

New Supply Pipeline: Under Construction Three markets in the U.S. announced more than 10 new construction projects in Q4’21. Miami had the most with 17 projects totaling 2,797 rooms or 4% as a percentage of existing supply.

Hampton Inn Delray Beach

E11even Hotel & Residences

Aloft Fort Lauderdale

Q2 2023 | 143 Keys

Q4 2024 | 100-150 Keys

Q1 2023 | 138 Keys

Year End 2021 Top Line Metrics

67% Occ

$223 ADR

$149 RevPAR

CitizenM Miami Brickell

Four Seasons Fort Lauderdale

Moxy Wynwood

Q1 2022 | 252 Keys

Q3 2022 | 130 Keys

Q3 2023 | 120 Keys

Loews Hotel Coral Gables

Mandarin Oriental Boca Raton

Virgin Hotel Miami

Q4 2022 | 242 Keys

Q3 2022 | 164 Keys

Q1 2024 | 250 Keys

Holiday Inn Midtown Miami

Thompson South Beach

Q3 2022 | 207 Keys

Q4 2023 | 150 Keys

FLORIDA MARKET REPORT

South Florida Transaction Volume & Major 2021 Transactions Hotel Name

City

Opened

Rooms

Sale Price

Per Room

Sale Date

Margaritaville Beach Resort

Hollywood

2015

369

$270,000,000

$731,707

Sep-21

The Ben Autograph Collection

West Palm Beach

2020

208

$152,000,000

$730,769

Oct-21

The Gabriel Curio Collection

Miami Beach

1937 / 2021

132

$81,400,000

$616,667

Jul-21

Four Seasons Brickell

Miami

2003

221

$130,000,000

$588,235

Jul-21

East Hotel Brickell City Centre

Miami

2016

352

$173,990,000

$494,290

Oct-21

Residence Inn Surfside

Miami Beach

2016

175

$69,900,000

$399,429

Dec-21

Conrad Hotel (AKA Hotel)

Miami

2003

219

$75,000,000

$342,466

Oct-21

AC Hotel

Miami Beach

2015

150

$45,300,000

$302,000

Nov-21

Marriott Resort & Spa

Pompano Beach

2013

219

$54,000,000

$246,575

Dec-21

Miami Transaction Volume Rolling 4-Quarter Volume

Quarterly Volume

4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000

1 03 /2 02

0 03 /2 02

9 03 /2 01

8 03 /2 01

7 03 /2 01

6 03 /2 01

5 03 /2 01

4 03 /2 01

3 03 /2 01

03 /2 01

Source: Real Capital Analytics

Biltmore Hotel Coral Gables 2021 Financing Represented by Berkadia

FLORIDA MARKET REPORT

MARKET DEEP DIVES ORLANDO

FLORIDA MARKET REPORT

Market Deep Dive - Orlando The top tourist destination in the nation, the Orlando MSA, is commonly referred to as the “Theme Park Capital of the World.” The local tourism industry has created a financial windfall for local governments, which are investing over $8.1 billion on major infrastructure projects, including the Interstate 4 Ultimate Improvement Project, Orlando International Airport expansion, and various Central Florida Expressway Authority projects. Additionally, approximately 14 million square feet of industrial and logistics space are either under construction or planned in the metro area. In addition to public spending, companies in the private sector are investing heavily in metro Orlando, thanks in part to the area being a highly desirable location for workers to relocate. Many institutions in the education and health services sector plan to expand to keep pace with the rise in population that is forecast to grow faster than the national growth rate over the next five years. Expansions at Universal Studios and Walt Disney World should continue to fuel long-term employment in the leisure and hospitality sector.

Residence Inn Near Universal 2021 Financing Represented by Berkadia

#1 U.S. Travel Destination for 11 Consecutive Years through 2020 •

Orlando set a record with 76 million visitors in 2019, once again setting an all-time record in US travel

•

Top Ranked Cities for Visitation in 2021 Rank

# Visits

Walt Disney World

63,506,126

New York, NY

49,180,361

Miami Beach, FL

44,528,699

If Walt Disney World was a city, it would

Austin, TX

30,593,487

have been the most visited city in 2021

Nashville, TN

29,508,915

To put this into perspective, New York City had 67 million visitors in 2019

Orlando has been the #1 Travel Destination for Close to a Decade Orlando Visitors (in Millions)

•

U.S. Cities (Leisure Travel)

2012

2013

2014

2015

2016

2017

2018

2019

FLORIDA MARKET REPORT

Growing Roster of Theme Parks and Placemaking Developments •

7 of the top 10 US theme parks are in Orlando, including Disney’s Magic Kingdom and Epcot, SeaWorld,

•

Universal Studios bought nearly 750-acres on International Drive adjacent to the Convention Center and

and Universal Studios Florida

is designing and constructing a nearly +/- $3 Billion multi park expansion

Orlando Theme Park Visitation Statistics Disney Magic Kingdom

Animal Kingdom

2009

17,233,000

2010

Overall Orlando Visitors

Universal Studios

Hollywood Studios

Disney Total

Disney % Increase

Universal Studios

Islands of Adventure

Universal Total

Universal % Increase

Orlando Total

Orlando % Increase

9,590,000 10,990,000

9,700,000

47,513,000

5,530,000

4,627,000

10,157,000

46,600,000

16,972,000

9,686,000 10,825,000

9,603,000 47,086,000

-0.9%

5,925,000

5,949,000

11,874,000

16.9%

51,400,000

10.3%

2011

17,142,000

9,783,000 10,825,000

9,699,000 47,449,000

0.8%

6,044,000

7,674,000

13,718,000

15.5%

55,100,000

7.2%

2012

17,536,000

9,998,000

11,063,000

9,912,000 48,509,000

2.2%

6,195,000

7,981,000

14,176,000

3.3%

57,000,000

3.4%

2013

18,588,000 10,198,000

11,229,000

10,110,000

50,125,000

3.3%

7,062,000

8,141,000

15,203,000

7.2%

59,000,000

3.5%

2014

19,332,000 10,402,000 11,454,000

10,312,000

51,500,000

2.7%

8,263,000

8,141,000

16,404,000

7.9%

62,000,000

5.1%

2015

20,492,000 10,922,000

11,798,000 10,828,000 54,040,000

4.9%

9,585,000

8,792,000

18,377,000

12.0%

66,000,000

6.5%

2016

20,395,000 10,844,000

11,712,000

10,776,000 53,727,000

-0.6%

9,998,000

9,362,000

19,360,000

5.3%

68,000,000

3.0%

2017

20,450,000 12,500,000 12,200,000 10,722,000 55,872,000

4.0%

10,198,000

9,549,000

19,747,000

2.0%

72,000,000

5.9%

2018

20,859,000 13,750,000 12,444,000 11,258,000

58,311,000

4.4%

10,708,000

9,788,000 20,496,000

3.8%

75,000,000

4.2%

2019

20,960,000 13,888,000 12,444,000 11,483,000 58,775,000

0.8%

10,922,000 10,375,000

3.9%

76,000,000

1.3%

Epcot

Pandora: The World Avatar opened on May 27, 2017, and drove a 27% increase from 2016 to 2018. The Wizarding World Of Harry Potter opened at Islands of Adventure in 2010 and led to a 65% increase in visitors over the next two years. When the attraction expanded to Universal Studios in 2014, it led to another 35% spike in two years. Star Wars: Galaxy’s Edge opened in August 2019 and is just starting to realize its full potential post-COVID

21,297,000

Economic and Population Growth •

Since 2010, Orlando’s population has grown at 3x the pace of the US

•

Orlando is projected to add more than 1,500 people to the region every week for the next 11 years

•

Industry employment is set to grow 19% by 2030, a full 10% faster than the U.S. average, creating upwards of 500,000 new jobs

Orlando Population Growth Has Outpaced The US 2,500,000

3.0% 2.5%

2,000,000

2.0% 1,500,000 1.5% 1,000,000 1.0% 500,000

0.5%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Orlando

Orlando Growth Rate

0.0%

United States Growth Rate

FLORIDA MARKET REPORT

2nd Largest and 2nd Busiest Convention Center in the Nation with Expansion Underway •

Orange County Convention Center offers 2.1 million square feet of exhibition space and attracts close to 1.5 million attendees yearly

•

Attendees spend approximately $2,200 during their stay, adding

•

In line with pre-pandemic performance, the center is scheduled

over $3 billion to the local economy every year

to host 135 events with 1.4 million attendees yielding a $2.6 billion economic impact during its 2021-2022 fiscal year

•

Planned $605MM expansion, bringing an additional 200,000 SF of contiguous exhibit space

OCCC had nearly 3x the number of visitors in 2021 when to OCCCcompared had nearly 2020 3x the number of

Orange County Convention Center Total Visitors OCCC Total Visitor s

visitors in 2021 when compared to 2020.

8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 -

2019

2020

2021

Orlando Marriott Lake Mary 2021 Recapitalization Represented by Berkadia

One of the Largest and Busiest Airports in the Country with Expansion Underway •

The Orlando International Airport (MCO) is the nation’s 4th largest airport and the busiest airport in Florida

•

Two capital improvement projects totaling $4.3 billion are underway, which would add an additional 19 gates, more international arrivals facilities, and enhanced amenities to the airport

•

The $3.5 Billion Brightline High Speed Rail is under construction and will connect Downtown Miami to Orlando Airport in under 3 hours

Orlando International Airport Ridership Orlando International Airport Passenger Passenger Ridership

Passenger Tra MCOMCO passenger Increased traffic in 2021 87% Com increased 87% compared to 2020.

60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

FLORIDA MARKET REPORT

Epic Universe Universal Studios recently announced plans to build the first new major theme park in the U.S. since Disney California Adventure opened in 2001. The new park, dubbed Universal’s Epic Universe, is the first theme park construction project of this scale in Orlando since the opening of Universal’s Islands of Adventure theme park in 1999. Representing the single-largest investment made by Comcast NBCUniversal in a theme park, the grounds will stretch across roughly 750 acres that Comcast put together over the last decade. This massive expansion will attract tens of millions of new visitors once it opens, which is expected to be in 2025.

EPCOT’s Historic Transformation Walt Disney once said EPCOT would “always be in a state of becoming”, as it is a place that changes with the times. Since 2019, the Walt Disney World Resort theme park has been living up to that promise, as it continues the biggest transformation of any Disney Park in history, bringing the next generation of immersive storytelling to life through a plethora of new attractions and experiences. EPCOT will be unified with four neighborhoods that each speak to important aspects of the world and its people: World Showcase, World Celebration, World Nature and World Discovery. These neighborhoods will be filled with new experiences rooted in authenticity and innovation that take guests to new destinations, with final attractions opening by the parks’ 50th anniversary in October, 2022.

Star Wars: Galaxy’s Edge Star Wars: Galaxy’s Edge, one of Central Florida’s newest attractions, is Disney’s largest and most technologically advanced single-themed land expansion in the history of Disney Parks. With a construction cost of over $1 billion, the expansion is expected to attract millions of visitors to Disney’s Hollywood Studios. With an untimely opening in 2019, park visitation was on hold for much of 2020, delaying the impact it will have on Orlando tourism until 2022.

ORLANDO THEME PARK DEVELOPMENTS

FLORIDA MARKET REPORT

Orlando Historical Market Performance Orlando, the second largest lodging market in the nation behind Las Vegas, is a thriving hospitality market that benefits from both domestic and international tourism, as well as significant convention and business demand. Prior to COVID, the Orlando hotel market consistently operated above 75% occupancy reaching a peak ADR of $127 in 2019. Recovery is well underway with trailing 12-month ADR of $124 as of January 2022 with occupancy still lagging pre-COVID highs but improving through the spring 2022 season year-over-year. Orlando’s seasonality patterns historically mirror peak months for theme parks and convention business. Travelers flocking to Florida in the winter and spring months support peak demand in these seasons, while drive-to business from regional guests define the bulk of summer and fall visitation.

136,000

#2 LARGEST

HOTEL ROOMS IN ORLANDO

1.7% ROOMS UNDER

HOSPITALITY MARKET IN U.S.

CONSTRUCTION AS % OF EXISTING SUPPLY

2013

2014

2015

2016 ADR

2017 RevPAR

2018 Occupancy

2019

2020

$70

2021

Occupancy (%)

$121

$46

$110

$96

$127

$98

$126

$94

$120

20%

$87

$35

$116

40%

$84

$70

$111

60%

$79

$105

$107

80%

$71

$140

$101

ADR / RevPAR

Orlando Orlando Lodging LodgingPerformance Performance

Orlando Transaction Volume & Major 2021 Transactions 2021 transaction volume in Orlando was the highest it has been since 2015 with over $1.3 billion trading throughout the year. The 3rd largest trade of 2021 took place during the second quarter, when the Four Seasons Resort at Walt Disney World traded for $610 million, or $1.37 million per key. The second most notable transaction in the market was the Orlando Marriott Village Hotel Portfolio sale, which consisted of 1,112 keys spread over three hotels, and traded at $115 million. Other notable transactions include the sale of Springhill Suites Orlando Lake Buena Vista, which traded for $66.3 million in June, and the Holiday Inn Resort Orlando Suites, which traded in the same month.

Orlando Transaction Volume Rolling 4-Quarter Volume

Quarterly Volume

2,500,000,000

2,000,000,000

1,500,000,000

1,000,000,000

500,000,000

1 03 /2 02

0 03 /2 02

9 03 /2 01

8 03 /2 01

7 03 /2 01

6 03 /2 01

5 03 /2 01

4 03 /2 01

3 03 /2 01

03 /2 01

Source: Real Capital Analytics

Project Name

City

Opened

Rooms

Four Seasons Resort Orlando at Disney World

Orlando

2014

444

$610,000,000

$1,373,874

Apr-21

Residence Inn Near Universal Orlando

Orlando

2018

195

$45,000,000

$230,769

Nov-21

Springhill Suites Orlando Theme Parks

Orlando

2018

180

$38,700,000

$215,000

Jun-21

TownePlace Suites Orlando Theme Parks

Orlando

2018

155

$33,325,000

$215,000

Nov-21

Lake Mary

2009

119

$20,400,000

$171,429

Dec-21

Orlando Marriott Village Hotel Portfolio

Orlando

2000

1112

$115,000,000

$103,417

Jun-21

Four Points by Sheraton Orlando Internation Drive

Orlando

1974

301

$31,000,000

$102,990

Aug-21

Sheraton Lake Buena Vista Resort

Orlando

1986

489

$49,886,600

$102,018

Aug-21

Crowne Plaza Orlando - Universal Blvd

Orlando

2002

400

$35,000,000

$87,500

Mar-21

Holiday Inn Resort Orlando Suites

Orlando

1999

777

$45,269,591

$58,262

Jun-21

Crowne Plaza Orlando - Universal Blvd

Orlando

2002

400

$35,000,000

$87,500

Mar-21

Holiday Inn Resort Orlando Suites

Orlando

1999

777

$45,269,591

$58,262

Jun-21

Residence Inn Orlando Lake Mary

Sale Price

Per Room

Sale Date

FLORIDA MARKET REPORT

Orlando Construction Pipeline Approximately 2,400 rooms are under construction in the Orlando market. Seemingly a large number relative to other markets, this pipeline represents only 1.8% of the existing supply, lower than both the national average of 2.8% and Top 25 hospitality market average of 4%.

Fairmont Orlando

Conrad Orlando at Evermore

Star Wars: Galactic Starcruiser Hotel

Q1 2025 | 550 Keys

Q3 2023 | 433 Keys

Q2 2022 | 150-200 Keys

Hyatt House Orlando/International Drive

Cambria Orlando

Hyatt House Orlando Airport

Q4 2022 | 175 Keys

Q1 2022 | 118 Keys

Q3 2022 | 156 Keys

Cambria Hotels & Suites Orlando

Collegiate Village

AC Orlando Airport

Q2 2024 | 140 Keys

Q3 2023 | 123 Keys

TBD 2023 | TBD Keys

Four Points Orlando I-Drive 2021 Sale Represented by Berkadia

Orlando Major Events

FLORIDA MARKET REPORT

MARKET DEEP DIVES Tampa Bay

FLORIDA MARKET REPORT

Market Deep Dive – Tampa Bay

#1 Occupancy lodging market in the United States in 2021

Tampa With over 3.1 million residents, Tampa is widely considered one of the most desirable and businessfriendly cities in the country and has emerged

#2 and #3 in nation for fastest year-over-year rent growth for Tampa and St. Petersburg, respectively

as a top secondary market poised to compete with the likes of Atlanta, Austin, Denver, and Nashville. Tampa’s ease of connectivity to other

Home of the 2021 Super Bowl Champion Tampa Bay Buccaneers

major metros and highly talented workforce have resulted in an established and growing economy supported

healthcare,

financial

services,

tourism, manufacturing, and technology, to name

Home of the 2020 & 2021 Stanley Cup Champion Tampa Bay Lightning

a few. The region’s affordable cost of living, low tax environment with zero state income tax, excellent year-round weather, and pristine waterfront are attracting people and businesses to the region at a

#1 ranked medium-sized airport in the U.S. (WSJ)

blistering pace. Tampa Bay is home to 20 corporate headquarters that generate over $1 billion in annual revenue, eight of which are Fortune 1000 companies. Additionally,

#2 ranked airport in North America (J.D. Power)

Five of the Top 20 “Best Beaches in the U.S.” according to TripAdvisor are located in Tampa Bay, with St. Pete Beach commanding the #1 spot for 2021. The combination of a diversified and growing economy with an immense tourism draw supports

University of South Florida: #1 fastestrising (in terms of national rankings) university in America over the past decade, public or private (U.S. News)

Tampa Bay’s continued desirability and growth in the years ahead.

22 renters apply for every vacant apartment in the Tampa Bay Area (RentCafe)

Hotel Indigo Sarasota

2021 Sale and Financing Represented by Berkadia

Brandon-Riverview ranked as America’s #19 fastest growing city (U-Haul Annual Growth Index Report)

#1 City in Florida -resonance consultancy (06/2021)

#2 fastest growing metro for small business -paychex & HIS Markit (10/2021) 54

Tampa Major Events

Super Bowl LV 2021

NCAA Men’s Frozen Four 2023

NCAA Men’s Basketball Tournament First Round 2021

U.S. Gymnastics Championship 2022

NCAA Women’s Volleyball Championship 2023

NCAA Women’s Basketball Final Four 2025

NCAA Men’s Basketball Tournament First & Second Rounds 2026

Raymond James Stadium

Home of the 2021 Super Bowl Champion Tampa Bay Buccaneers

FLORIDA MARKET REPORT

Tampa International Airport (TPA) Tampa International Airport enjoyed a record year in 2019 with over 22.5M passengers. TPA has committed to major capital improvements and is currently wrapping up the $544 million Phase II of the overall $4.1 billion capital plan to modernize, upgrade, and maintain its facilities. The three-year-long third phase will begin in 2023 and add 16 gates to the airport. Upon completion, TPA will be able to host 34 million passengers annually.

24,000,000

1,200,000

21,000,000

1,050,000

18,000,000

900,000

15,000,000

750,000

12,000,000

600,000

9,000,000

450,000

6,000,000

300,000

3,000,000

150,000

2012

2013

2014

2015

Total Passengers

2016

2017

2018

2019

International Passengers

2020

2021

International Passengers

Total Passengers

Tampa International Airport Travelers Tampa International Airport Travelers

Notable Tampa Developments

Westshore Mall Redevelopment The redevelopment of Westshore Mall was recently approved by the Tampa City Council. The 47-acre site will feature several new buildings up to 12 stories tall to complement a reconstruction of the existing mall space. A variety of uses are included in the project including residential, retail, office, medical office space, grocery, and more. The redevelopment, proposed by mall owner Washington Prime Group, is among the largest redevelopment plans in the works in the Tampa Bay region. The project currently has three planned phases as detailed below:

•

Phase 1 - 835 residential units, 120,000 SF medical office, 93,000 SF office, 45,000 SF retail, 30,000 SF grocer

•

Phase 2 – 649 residential units, 31,000 SF of F&B outlets

•

Phase 3 – 281 residential units, 149,000 SF office, 9,000 SF of F&B outlets

FLORIDA MARKET REPORT

Midtown Tampa The New York City-based Bromley Companies recently completed the 22-acre, 1.8 million-square-foot, mixeduse project in Tampa’s booming Westshore area. The $500 million project includes 240,000 square feet of retail and entertainment space, 750,000 square feet of Class A ofﬁce space, 400 condos or apartments, and a 225room boutique hotel. The new, walkable district has served to connect Downtown Tampa with the Westshore Business District upon its completion in Feb 2021. A future phase to include multiple new Class A office towers is moving ahead as of Mar 2022 to break ground this summer due to strong leasing velocity for the recently completed phase 1.

Water Steet Tampa The massive $1 billion first phase is largely complete within the $3 billion, 53-acre Water Street Tampa mixed-use project. When the entire 16-block megadevelopment is complete in 2027, Water Street will contain one million square feet of cultural and retail space, 3,500 residential units, hotels, and innovation hubs. The first round of buildings delivered in 2022 to overwhelming success, featuring the University of South Florida Morsani College of Medicine, Tampa Bay’s first JW Marriott convention hotel, the 1001 Water Street trophy office building, the 420-unit Heron Water Street Apartments, the 388-unit Cora Apartments, the 490-unit Asher Apartments, and the five star Tampa EDITION Hotel & Residences.

Gas Worx With full city council approval, the 50-acre, multiphase, $1 billion, mixed-use development connecting Tampa’s Channelside district to Historic Ybor City is set to break ground in 2022. The first phase will include 724 apartments spread across three buildings, a 940-space parking garage, and 20,000 SF of retail. Subsequent phases are planned for as many as 5,000 homes, 500,000 SF of office, and 150,000 SF of retail. The project will be developed by Darry Shaw and D.C.-based Kettler.

Over $9 Billion of Mixed-Use Development across Tampa Bay

The first visit we had, we saw all the DNA there and said Wow, this region is a magnet for innovation." If we’re going to turn this region into the next Austin, I think we will unite with Tampa and St. Pete.” C AT H I E W O O D CEO of Ark Invest

St. Petersburg Notable Developments

Creekside – Tropicana Field Redevelopment

•

Midtown Miami was recently awarded as the developer to lead the $2.7 - $3.8 billion, 86-acres revitalization of the area surrounding Tropicana Field regardless if the Rays stay in Tampa

•

The project that is estimated to commence in 2022 will feature office, affordable housing, a hotel, retail and an expansion of Booker Creek.

Fortune 500 Company (“Project Athena”)

•

A Fortune 500 company currently located in New York City with over $7.5 billion in annual revenue and stores located in 27 countries is rumored to be landing in St. Pete and would build a 100,000-150,000 SF headquarters bringing 300-350 jobs with average salaries of $120,000 to the area

•

The company is estimated to generate approximately 1,300 annual hotel room rentals in Pinellas County

FLORIDA MARKET REPORT

Innovation District

•

Ark Innovation Center

•

Cathie Wood’s ARKInvest, who purchased naming rights of the Tampa Bay Innovation Center, will anchor the flexible office center built to foster growth for entrepreneurs and startup activity in Pinellas County. The $16 million project on 2.5-acres featuring incubator space, coworking, and community space is planned to commence construction in 2022

Maritime and Defense Technology Hub & USF Center of Environmental and Oceanographic Science (EOS)

•

The now 33,000 SF, 90% leased Maritime and Defense Hub is home to Pole Star’s Florida headquarters and Gates Defense Group, a graduate of the Innovation Center

•

The proposed EOS will house USF’s marine research and teaching programs led by the Florida Flood Hub for Applied Research and Innovation

•

These two centers are major catalysts for advancing St. Pete’s marine sciences industry, and exemplify St. Petersburg’s diversifying economic engine

EDGE District

•

The EDGE District, or Entertainment, Dining, Arts, Etc., is defined as the area between Dr. Martin Luther King Jr. Street, 16th Street, and 1st Avenue North and South, and features locally-owned shops, restaurants, art, murals, and a pedestrian-friendly destination among some of St. Pete’s oldest, most historic buildings. The area has seen an influx of multifamily development with five new apartments totaling 1,200 units either complete or underway.

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Orange Station at the EDGE

•

Orange station is a planned mixed-use development in the heart of the EDGE District which will feature 100,000 SF of office, 56 condominiums, 30 workforce apartments, and 20,000 SF of retail

Hotel Indigo St. Petersburg

2020 Sale Represented by Berkadia

Tahitian Inn Resort Treasure Island 2020 Sale Represented by Berkadia

St. Petersburg/Clearwater International Airport (PIE) •

The $22 million renovation at PIE, which expanded gate sizes and added a loading bridge, is just the beginning of $120 million of improvements planned over the next five years to meet its growing number of visitors. The increased capacity will generate more tourism and traffic to the surrounding airport hotels, and with no new supply coming online during the same time, nearby Hotels can expect increased performance.

St. Petersburg/Clearwater InternationalAirport Airport Travelers Travelers St. Petersburg/Clearwater International

Annual Passenger Boardings

2,500,000

2,000,000

1,500,000

1,000,000

500,000

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

FLORIDA MARKET REPORT

Tampa Market Performance The Tampa lodging market has historically operated in the low-70s occupancy, but 68% was enough to make Tampa the top occupancy lodging market in the country in 2021. The market benefitted from hosting Super Bowl LV as well as the first round of the NCAA Men’s Basketball Tournament, which will be a cornerstone for this market going forward as its established itself as a major host city for large scale events. The market set a new record in ADR eclipsing pre-pandemic levels.

2013

2014

2015

2016 ADR

2017

2018

RevPAR

2019

2020

$96

$140

$60

$111

$96

$132

$82

$93

2021

Occupancy (%)

15%

$130

$30

$92

30% $127

$60 $87

45%

$122

$90

$115

60%

$72

$120

$106

75%

$65

$150

$100

ADR / RevPAR

Tampa / St. Petersburg Lodging Performance Tampa/ St. Petersburg Lodging Performance

Occupancy

Tampa New Hotel Supply Pipeline New hotel construction in the Tampa market is healthy with ample demand in the market that will absorb new projects with ease. Tampa is getting its first 5-star hotel with the Tampa EDITION Hotel delivering to Water Street this quarter, and another JW Marriott will deliver to the market, this time on Clearwater Beach.

Tampa EDITION Hotel

JW Marriott Clearwater Beach

Holiday Inn Express & Suites

514 Channelside Dr

691 S Gulfview Blvd

2055 N Dale Mabry Hwy

# Keys: 172 | Year Built: 2022

# Keys: 162 | Year Built: 2023

# Keys: 100 | Year Built: 2022

Owner: Strategic Property Partners

Owner: Kiran Patel

Owner: Jayesh Patel

Status: Under Construction

Holiday Inn Express Brandon

2022 Sale Represented by Berkadia

Hampton Inn & Home2 Suites Tampa Downtown Channel District

Ramada Tampa Westshore

2021 Sale and Financing Represented by Berkadia

SpringHill Suites

JW Marriott Tampa

1104 N Franklin St

613 S Morgan St

1155 E Kennedy Blvd

# Keys: 168 | Year Built: 2021

# Keys: 519 | Year Built: 2020

# Keys: 213 | Year Built: 2019

Owner: Dynamic Group

Owner: Strategic Property Partners

Owner: Noble Hotels

Status: Under Construction

Status: Complete

Hyatt House Tampa Airport / Westshore

Home2 Suites Tampa Westshore Airport

5308 Avion Park Dr

5222 W Laurel St

Status: Complete

Hyatt Place & Hyatt House Tampa Downtown 325 N Florida Ave

# Keys: 345 | Year Built: 2020 Owner: HRI Properties Status: Complete

# Keys: 145 | Year Built: 2020

# Keys: 106 | Year Built: 2020

Owner: McKibbon Hotel Group

Owner: Baywood Hotels

Status: Complete

FLORIDA MARKET REPORT

Tampa Transaction Volume & Major 2021 Transactions Tampa saw a flurry of hotel transactions in 2021 with total transaction volume reaching $890 million. Most notably, the Current Hotel, Autograph Collection set an all-time per key pricing record in Hillsborough eclipsing the prior mark by more than $100,000 per key. The downtown submarket saw the most activity with the historic Floridan Palace, Le Meridien, Westin Waterside, and dual-branded Hampton Inn & Home2 Suites in the Channelside district all changing hands.

Notable Tampa Hotel Transactions Sale Date

# Keys

Year Built

Sale Price

Price per Key

The Current, Autograph Collection

Dec-21

180

2019

$85,000,000

$472,222

Caspers Company

Lifsey RE & Holdings; AAOF; Pinnacle Hotel Management

Residence Inn & SpringHill Suites Clearwater Beach

Oct-21

255

2017

$115,000,000

$450,980

Dynamic City Capital

Key International

Le Meridien1

Oct-21

130

1905

$43,000,000

$330,769

Certares

Development Services Group

Westin Tampa Waterside

Sep-21

299

1985

$90,000,000

$301,003

Newbond Holdings JV Apollo

Walton Street Capital

Hampton Inn & Home2 Suites Tampa Downtown Channel District

Jul-21

213

2019

$57,510,000

$270,000

Noble Investment Group

Liberty Group

Floridan Palace

Oct-21

205

1927

$47,000,000

$229,268

1754 Properties JV Triangle Group

Antonios Markopoulos

The Godfrey Hotel & Cabanas2

Aug-21

276

1974

$35,000,000

$126,812

MCR

Oxford Capital Group

Property Name

Buyer

1Hotel is on a ground lease with National Park Service and was encumbered by CMBS loan. 2Potential multi housing development site

Rolling 4-Quarter Volume

1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0

Source: Real Capital Analytics

Quarterly Volume

Seller

FLORIDA MARKET REPORT

MARKET DEEP DIVES FLORIDA KEYS FLORIDA PANHANDLE JACKSONVILLE

FLORIDA KEYS The Florida Keys have continued to demonstrate its resiliency throughout COVID – ranking 1st in occupancy, ADR, and RevPAR in 2021 when compared to the Top 20 largest lodging markets achieving 78.9%, $390, and $307 in occupancy, ADR, and RevPAR, respectively. They have historically been one of the top performing U.S. lodging markets, generating ~4% annual ADR growth and 72.0% average occupancy from January 1988 through December. As a protected ecological area, barriers to entry are extremely high due to land use restrictions that protect the sensitive ecosystem from oversaturation by limiting development. From 2009-2021 the market’s supply CAGR was 1.4%. The Keys offer travelers the feel and same activities of a Caribbean vacation with the comfort and security of remaining on United States soil. With over 22 million people within a 12-hour drive, the Keys stand to benefit from continued drive-to leisure travel. In fact, approximately 77% of tourists drove to Key West in 2020. Furthermore, the Florida Keys are a market designed for socially distant activities, including fishing, diving, snorkeling, and boating, which added to its allure through the dog days of the pandemic.

#11

BEST SCUBA DIVING IN THE US & CANADA

BEST DOMESTIC DESTINATION

BEST BEACHES IN THE US

Reader’s Choice Awards 2021

TripAdvisor Travelers’ Choice 2021

US News 2022

2013

2014

2015

2016 ADR

2017 RevPAR

2018

2019

Occupancy

2020

$307

$390

$165

$281

$210

$276

$204

$266

$206

$268

2021

Occupancy (%)

20%

$203

$100

$268

40%

$207

$200

$265

60%

$199

$300

$249

80%

$179

$400

$230

ADR / RevPAR

Florida Keys Lodging Performance Florida Keys Lodging Performance

Florida Keys Transaction Volume

Source: Real Capital Analytics

FL Keys Vacation Rentals

2021 Financing Represented by Berkadia

FLORIDA MARKET REPORT

FLORIDA PANHANDLE

Florida Panhandle Market Overview The Florida Panhandle was the runner-up for best 2021 performance in the state of Florida behind the Florida Keys. The Panhandle hotel market is comprised of 43,000 rooms across 512 properties. The market currently has 2,000 rooms under construction. This market levered its greatest asset, award-winning beaches, to thrust ADR and RevPAR over 2019 levels by 18% and 15%, respectively. The real winner in 2021 was drive-to leisure destinations, and the Florida Panhandle epitomizes what it means to be a highly accessible, drive-to destination. Cities like Atlanta, Dallas, Nashville, Birmingham, and Houston are the Panhandle’s primary feeder markets. These markets’ populations grew collectively 16.5% over the last decade, and are projected to grow by another 14.3% by 2030. The growth and accessibility of this leisure market is what allowed for two record-setting per key hotel transactions to occur over the last quarter. Notable Panhandle Hotel Transactions Property Name

Sale Date

# Keys

Year Built

Sale Price

Price per Key

Buyer

Seller

The Henderson Beach Resort & Spa

Dec-21

170

2016

$112,500,000

$661,765

DiamondRock Hospitality Company

Dunavant Enterprises

SpringHill Suites Panama City Beach Beachfront

Nov-21

200

2018

$85,500,000

$427,500

OTO Development

Peachtree Hotel Group

Henderson Park Inn

Aug-21

1992

$27,500,000

$743,243

DiamondRock Hospitality Co

Dunavant Enterprises

Henderson Beach Resort

December 2021 Sale: $110,100,000

BEST BEACH IN FLORIDA

BEST BEACH IN THE U.S.

(US News & World Report 2021)

2013

2014

2015

2016 ADR

2017 RevPAR

2018

2019

2020

$100

$156

$61

$119

$87

$132

$83

$126

$74

$119

2021

Occupancy (%)

20%

$69

$40

$113

40%

$66

$80

$110

60%

$62

$120

$104

80%

$56

$160

$98

ADR / RevPAR

Florida Panhandle Lodging Performance Florida Panhandle Lodging Performance

Occupancy

FLORIDA MARKET REPORT

Aloft Jacksonville Airport

2021 Sale Represented by Berkadia

JACKSONVILLE Located in northeast Florida along the Atlantic Coast, Jacksonville is home to 80 national and division headquarters, including five Fortune 1000 companies as well as two major naval installations, the thirdlargest seaport in the country, numerous banking and financial powerhouses, and multiple health care and bioscience companies. In fact, over 20 hospitals serve the five-county region, including Mayo Clinic, one of only three in the nation. The Jacksonville lodging market supports 308 hotels or 30,000 rooms. Aligned with the rest of Florida, Jacksonville reported a strong rebound from 2020 lows with 2021 outperforming 2019 in ADR and RevPAR, and occupancy slightly below 2019 levels. Jacksonville Beach hotels were the first to recover, and by October 2021, hotels across Duval County had regained losses experienced in 2020. 2021 welcomed an estimated 18,000 new room nights available in the market. Despite a significant supply increase and suppressed business travel, Jacksonville’s occupancy managed to record 69.2%, just 2.7% below 2019 levels. The attractiveness of the Jacksonville market as a drive-to-leisure destination of the southeast drove the strong rebound in ADR and RevPAR outpacing 2019 by 5.4% and 2.5%, respectively. With an employment base growing twice as fast as the national average since 2015, Jacksonville has taken advantage of its strategic location in North Florida to support a diverse set of growing industries. Jacksonville has committed to making significant investments in their transportation infrastructure planning a third concourse at Jacksonville International Airport adding 12 additional gates. The Jacksonville Port Authority (JAXPORT), which operates Florida’s largest container port providing an annual economic impact of $31 billion, will complete a $480 million capital improvement project that will upgrade facilities and deepen the existing channel enabling the port to accommodate larger ships.

JACKSONVILLE RANKED AMONG “AMERICA’S FASTEST GROWING CITIES”

#2 AMONG “10 U.S. CITIES WHERE EVERYONE WANTS TO LIVE RIGHT NOW”

US News & World Report 2021

Jacksonville Lodging Performance Jacksonville Lodging Performance 62%

66%

70%

68%

72%

71% 53%

$100

75% 60%

2013

2014

2015

2016 ADR

2017 RevPAR

2018

2019

2020

$85

$123

$54

$101

$83

$117

$83

$115

$78

$109

$73

$104

15%

$67

$25

$99

30%

$61

$50

$93

45%

$54

$75

$87

ADR / RevPAR

69%

2021

Occupancy (%)

$125

Occupancy

Jacksonville Transaction Volume

Source: Real Capital Analytics

FLORIDA MARKET REPORT

2021 FLORIDA ACTIVITY

HOLIDAY INN EXPRESS BRANDON

ELEMENT MIAMI AIRPORT

RESIDENCE INN UNIVERSAL

ALOFT JACKSONVILLE AIRPORT

THE CURRENT, AUTOGRAPH COLLECTION

$19,500,000 Closed December 2021 Jacksonville, FL SALE

$85,000,000 Closed December 2021 Tampa, FL SALE

BILTMORE HOTEL CORAL GABLES

ORLANDO MARRIOTT LAKE MARY

FOUR POINTS ORLANDO I-DRIVE

$16,000,000 Closed January 2022 Tampa, FL SALE

$32,300,000 Closed December 2021 Orlando, FL FINANCING

$25,000,000 Closed August 2021 Miami, FL FINANCING

$28,500,000 Closed January 2022 Miami, FL SALE & FINANCING

$41,500,000 Closed August 2021 Orlando, FL RECAPITALIZATION

FL KEYS VACATION RENTALS $57,500,000 Closed December 2021 Key West, FL FINANCING

$31,000,000 Closed May 2021 Orlando, FL SALE

Berkadia Hotels & Hospitality Closed Nearly $500 MILLION IN FLORIDA HOTEL TRANSACTIONS IN 2H 2021

HOTEL INDIGO SARASOTA $15,200,000 Closed December 2021 Sarasota, FL SALE & FINANCING

RAMADA TAMPA WESTSHORE $18,900,000 Closed December 2021 Tampa, FL SALE & FINANCING

ALOFT LAKE BUENA VISTA

SPRINGHILL SUITES PANAMA CITY BEACH

TAHITIAN RESORT

ALOFT MIAMI DADELAND

$19,000,000 Closed November 2021 Orlando, FL FINANCING

$6,350,000 Closed December 2020 Treasure Island, FL SALE

$85,500,000 Closed November 2021 Panama City Beach, FL SALE

Under Contract Miami, FL SALE

FLORIDA MARKET REPORT

BERKADIA HOTELS & HOSPITALITY

FLORIDA HOTEL TEAM

Preston Reid

Michael Weinberg

Kyle Stevenson

Managing Director

813.675.0113

321.319.1419

786.646.2591

preston.reid@berkadia.com

michael.weinberg@berkadia.com

kyle.stevenson@berkadia.com

Wyatt Krapf

Mabelle Perez

Kyle Sahlsten

Senior Director

Director

Senior Real Estate Analyst

484.356.8197

786.646.2587

813.574.1398

wyatt.krapf@berkadia.com

mabelle.perez@berkadia.com

kyle.sahlsten@berkadia.com

Edmund Aramayo

Harry M. Mancera

Dylan Jones

Real Estate Analyst

786.543.3349

786.646.2587

813.675.0464

edmund.aramayo@berkadia.com

harry.mancera@berkadia.com

dylan.jones@berkadia.com

BERKADIA .COM / 800.446 . 2226

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