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New hotel boom on Florida’s Space Coast

On Behalf of | Jun 7, 2024 | Construction Law

Florida’s real estate market has had some major shakeups in recent years, but you might not know it if you looked only at the pace of construction in the state. The residential market has dealt with rising interest rates and a worsening insurance crisis, but meanwhile the number of new construction projects in the state has been growing every month.

One area seeing a lot of construction is Brevard County. According to a recent news report, the so-called Space Coast area will see more than 20 new hotels open over the next three years. Together, these hotels will add about 1,500 hotel rooms, raising the total number in the area to 12,000.

Tourism officials and others say there’s plenty of demand for these rooms. Port Canaveral is one of the world’s busiest ports for cruise ships. Many others come to the area to watch rocket launches or to attend student baseball and softball games at the USSSA Space Coast Complex.

Words of caution

As always with new construction, the rewards can be great, but the costs and risks are extremely high.

Industry analysts point out that it’s possible some of the 21 announced hotel projects may never actually come to fruition.

There are many factors that can make hotel-building a risky endeavor. Construction costs have risen over the past few years, although there are signs that prices are stabilizing. Meanwhile, the hotel industry is not immune to the insurance and interest rate problems affecting residential real estate. And of course, a sudden drop in demand for cruise ships could leave hundreds of hotel rooms empty.

With these potential problems, it’s crucial that contractors and others make sure they are financially and legally protected.