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It’s a question our Realtor partners frequently field from clients: Which communities offer the best Return on Investment (ROI)? Is it Destin? Any one of the 30A communities? Is it Panama City Beach?
Answering the question is a bit tricky. If you’re looking for the communities with the highest Average Daily Rate (ADR) you’ll get one answer. If you’re looking for the communities with the highest Occupancy (OCC), you’ll almost certainly get another.
The question is most accurately and meaningfully answered by comparing the RevPAR of each community.
Newsletter, Investors
Which communities offer the best Return on Investment
Published on Aug 30, 2023
Why RevPAR?
It’s considered the gold standard of metrics in the vacation rental space, as it balances the values of Average Daily Rate and Occupancy. If we only compare the ADR of these communities, Occupancy would not be taken into consideration. The result: Communities with very low Occupancy and sky-high ADR would come out on top. If we only considered Occupancy, communities with rock-bottom rates and sky-high Occupancy would win the day.
RevPAR balances the two metrics, effectively making it synonymous with ROI.
The top-performing communities for the Emerald Coast Market
WaterColor with a RevPAR of $316.26
Grayton Beach with a RevPAR of $290.22
Rosemary Beach with a RevPAR of $285.77
For 360 Blue, the results are a bit different. As you’ll see below, we outperform the market in ROI in these top 3 communities along the Emerald Coast.
The top-performing Emerald Coast Communities for 360 Blue
Watercolor with a RevPAR of $389
Grayton Beach with a RevPAR of $472
Rosemary Beach with a RevPAR of $351
Should you have questions regarding any other metrics—or for a courtesy rental projection—please reach out. My team and I are here for you.
