Vacation Lodging Hotspots: Unveiling the Cities with the Highest Occupancy Rates

The vacation rental market is booming, and understanding occupancy rates is crucial for investors. This analysis dives into key cities, comparing their performance based on occupancy and Average Daily Rate (ADR) to identify top-performing locations.

Occupancy Rate Leaders

Occupancy rate is a key indicator of demand. Let's examine which cities are leading the pack. Tampa, OR, stands out with an impressive occupancy rate of 89%. This suggests strong demand for vacation rentals in this location. Orlando, TX, follows closely with an occupancy rate of 85%.

Nashville, WA, also boasts a high occupancy rate of 86%, indicating a popular destination for travelers. Austin, OR, demonstrates a solid performance with an occupancy rate of 80%.

Average Daily Rate (ADR) Analysis

While occupancy is important, ADR reveals how much revenue properties are generating per night. Phoenix, TX, leads with a high ADR of $304. This suggests that while occupancy might not be the highest, properties are commanding premium rates.

Dallas, FL, also shows a strong ADR of $275, indicating a healthy revenue stream for vacation rentals. Atlanta, TN, follows closely with an ADR of $272. Seattle, CA, has an ADR of $252. Tampa, OR, has an ADR of $242.

Comparing Occupancy and ADR

A balanced approach considers both occupancy and ADR. For example, Tampa, OR, has an occupancy rate of 89% and an ADR of $242. This combination suggests a strong market with both high demand and reasonable rates. In contrast, Seattle, NC, has an ADR of $102 and an occupancy rate of 76%.

Orlando, TX, presents an interesting case with an occupancy rate of 85% and an ADR of $177. This suggests high demand, but potentially lower revenue per booking compared to Phoenix, TX, which has an ADR of $304 and an occupancy rate of 74%.

Return on Investment (ROI)

ROI is the ultimate measure of investment performance. Nashville, WA, shows a high estimated ROI of 17.88%. Charlotte, FL, also demonstrates a strong ROI of 18.37%. Atlanta, TN, has an ROI of 19.52%.

Tampa, CA, has an estimated ROI of 14.05%. Orlando, TX, has an ROI of 9.67%. Denver, AZ, has an ROI of 6.89%.

Data Table: Vacation Rental Performance by City

City	State	ADR	Occupancy	ROI
Orlando	WA	$289	81%	11.37%
Tampa	CA	$177	70%	14.05%
Orlando	TX	$177	85%	9.67%
Seattle	CA	$252	64%	6.94%
Nashville	WA	$148	86%	17.88%
Denver	AZ	$224	70%	6.89%
Tampa	OR	$242	89%	8.67%
Nashville	WA	$127	63%	19.92%
Dallas	FL	$275	78%	14.87%
Charlotte	FL	$252	72%	18.37%
Seattle	NC	$102	76%	11.85%
Atlanta	TN	$272	77%	19.52%
Austin	OR	$119	80%	9.17%
Phoenix	TX	$304	74%	16.53%

Key Takeaways

Based on the data, Tampa, OR, and Orlando, TX, stand out for their high occupancy rates. Phoenix, TX, and Dallas, FL, lead in ADR, suggesting premium pricing. Nashville, WA, Charlotte, FL, and Atlanta, TN, demonstrate strong ROI, making them attractive investment options. Investors should carefully consider their priorities – occupancy, ADR, or ROI – when selecting a location for vacation rentals.