- September 26, 2024
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How is Ormond's beachside faring when it comes to tourism and hospitality?
Real estate agent John Haley, of Coldwell Banker Premier properties, said interest is up — hotel parking lots are full, average daily rates have increased and so has revenue per available room. And this, he said, has led to commercial growth in retail and hospitality.
"Ormond just presents itself as a destination point for a higher end experience," Haley said. "Just a different flow, if you will, than the entertainment zone and some of the other areas."
Construction is currently ongoing for the newest hotel on the beachside, a 137-room, five-story Residence In by Marriott, to be located at 251 S. Atlantic Ave. The former Best Western at 205 S. Atlantic Ave. has been converted to a new Spark by Hilton hotel.
Haley has, to date, agreements with two hotels to be sold off-market. These agreements could take a year or two to finalize, but once they are, the hotels will be sold in the $15 to $20 million range. In these cases, the property owner tells Haley to bring them a buyer, hoping to avoid attention from public listings.
"It's always been there," Haley said of off-market sales. "But I see a trend more and more toward that, even with the larger players like Starwood Capital and some of the larger entities."
A contributing factor to the rising interest in beachside properties is the current state of hospitality, Haley said. Events at the Daytona Beach International Speedway and the Ocean Center translate to hotel bookings.
The Daytona Beach Area Convention and Visitors Bureau calculated tourism had a $5.4 billion economic impact in Volusia County in 2023. Hotel occupancy was up 4.3% in July 2024 compared to July 2023, though the hotel average daily rate and revenue per available room both saw a decrease for the same time period. However, all three stats were up in June 2024, compared to June 2023, including a 10.4% increase in revenue per available room, going from $87 in June 2023, to $96.06 in June 2024.
The revenue per available room was $96.75 in July 2024, down from $98.81 in July 2023.
"We are excited to see the development of new hotels and the renovation of existing properties, restaurants, attractions, and shopping," said CVB Executive Director Lori Campbell Baker in an email to the Observer. "We are seeing significant investment in this community, and we are optimistic about the future for the Daytona Beach area for both our visitors and residents alike."
Having more concerts ad events at the Ocean Center has been a "welcomed addition," she said.
"The Ocean Center typically hosts a busy schedule of meetings and conventions throughout the year that bring visitors in for overnight stays and drive bed tax revenues (that pay down the Ocean Center bonds and fund tourism marketing efforts) — and more concerts and events are a great complement for the destination," Baker said. "We appreciate the County Council’s efforts and the Ocean Center staff for their hard work in growing this asset for the entire community."
Last year, the Volusia County Council approved a new booking model for events at the Ocean Center, hoping to increase the facility's utilization. The county also hired a new director.
In Ormond Beach, Baker said development in the Ormond MainStreet area in recent years have contributed to the city's tourism.
"We have witnessed some exciting developments in the Ormond Beach Main Street area thanks to Bill Jones and many others that have invested in that area and created a thriving district," she said. "We have a plethora of attractions and exhibits to promote such as the Ormond Beach Sports Complex, the Ormond Memorial Art Museum & Gardens, Tomoka State Park and the scenic loop, Destination Daytona, shopping, and arts and culture and green spaces. These different properties and attractions — as well as the beach itself — are driving visitors especially to this area."
Ormond Beach, and its real estate, is attractive to people right now because it's affordable, Haley said. The fact that there is little available vacant land also drives up demand.
Converting former hotel buildings into residential apartment or townhome units may also be a trend that takes place in the future, Haley added.
"I think on the beachside in the next few years, you're going to see more hotels," Haley said. "... This market is affordable when you compare it to places like Palm Beach, Miami Beach, even north of here in Jacksonville. I think that the community — the hoteliers — are seeing and understanding that."
