Orlando Hotel Occupancy Fell on Epic Universe Debut Weekend
(Bloomberg) -- Hotel occupancy was lower than expected on the opening weekend of Comcast Corp.'s $7 billion Epic Universe theme park, according to analysis from market researcher CoStar Group Inc.
Hotel demand on the park's first day, May 22, was 'especially lackluster,' as reflected in a 57.2% occupancy rate for the overall Orlando, Florida, market, analyst Chantal Wu wrote in a report on Tuesday. That was a 7.4% decline from a year earlier.
Occupancy improved over the weekend, but was still down over the five days through Memorial Day, May 26, compared with the prior year period.
A limited availability of single-day tickets to the new park and concern by some consumers about overcrowding may have hampered visitors, Wu wrote. A convention that ended just before the weekend led to increased check-outs.
Universal sold tickets to the new theme park in phases, starting with multiday packages that included only one day at Epic. The company has been trying to manage attendance at the new park as it works through any issues with rides and other operations.
'We have seen strong demand for Epic Universe and our hotels, and we are being intentional about managing park capacity to ensure a great guest experience,' Universal said in a statement.
The market added some 2,600 hotel rooms over the past year, according to Casandra Matej, chief executive officer of Visit Orlando, a nonprofit that promotes the destination. The Thursday before Memorial Day is typically a slow one, before guest counts rise over the weekend.
'Orlando had a solid Memorial Day weekend performance,' she said in a statement.
Lower-priced hotels in the city saw declines in room revenue, suggesting that 'inflation-pinched consumers opted for less travel,' according to CoStar. Upper-tier hotels showed revenue gains.
The new theme park, the biggest in Orlando in three decades, features attractions tied to classic Universal movie monsters, Harry Potter and Nintendo Co.'s Super Mario characters.
(Updates with company and tourism office comments.)
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