St. Joe's Hotels Shine with 99% Occupancy: Emerald Coast Booms!

Panama City Beach, Florida, USA - The St. Joe Company (JOE) reported a striking achievement over the July 4th holiday weekend, boasting an impressive 99% occupancy rate across its 1,298 rooms in 12 hotels and resorts scattered throughout Northwest Florida. This stellar performance comes at a time when the Emerald Coast is experiencing a surge in tourism, supported by record-breaking events and a broad array of guests, as Ainvest highlights.

Notably, St. Joe’s venues welcomed visitors from 37 U.S. states, with average daily rates (ADRs) fluctuating between the mid-$200s to the low-$1,000s. Among the various attractions, the Star Spangled Spectacular drew around 150,000 attendees, while an extravagant fireworks show at the Watersound Club captivated 2,000 guests.

Strategic Growth and Diversification

The company thrives on strategic asset diversification and continues its steady expansion. This is underscored by a hospitality revenue report of $39.6 million for the first quarter of 2025, reflecting a slight year-over-year increase. The Watersound Club notably has a thriving membership program, boasting 3,498 members that contribute to ongoing occupancy along with opportunities for upselling services.

In addition to its robust hospitality portfolio, St. Joe’s land development strategy is promising. It includes high-value infrastructure projects like the $414 million Florida State University Panama City Beach Medical Campus—efforts that are poised to attract more visitors and potential residents to the area.

With an expanding number of operational rooms—from 1,177 to 1,298—St. Joe is well-prepared to accommodate the growing demands of retail, residential, and commercial sectors in high-growth areas. Their diversified hospitality options, including brands like Embassy Suites and Hotel Indigo, further help mitigate risks tied to economic shifts. Not only does it provide stability, but it also positions the company favorably as demand for family-oriented and second-home buyer markets continues to grow in Northwest Florida.

The Wider Hospitality Landscape

But what does the broader picture look like? Nationally, the U.S. lodging industry wrapped up 2023 with a 63.0% occupancy rate, a minor uptick from the previous year. As detailed in HVS, the first quarter shone brightly, but later periods saw a decline, impacted by increased international travel and subdued inbound tourism. However, on a positive note, revenue per available room (RevPAR) rose by 4.9% from 2022, surpassing 2019 levels by a significant margin.

Looking ahead, a modest growth trajectory for the hotel sector remains on the radar, bolstered by advances in group bookings and an uptick in international travel. As travelers continue to seek leisure options, areas like the Emerald Coast are set to see positive effects on occupancy rates and average daily revenues, especially as investors show renewed interest.

Indeed, under current conditions, it appears there’s something to be said for investing in hospitality, particularly in regions seeing revitalization and growth like St. Joe’s Northwest Florida base. With infrastructure enhancements, including upgrades to the Northwest Florida Beaches International Airport, corporate relocations are expected to add fuel to this flourishing environment.

As CBRE Hotels notes, a keen understanding of market forecasts and performance metrics is essential for potential investors to navigate the evolving landscape, not least because supply growth continues to lag historical norms. Yet, the forecast remains cautiously optimistic, serving as a cautionary reminder for those keen to dip their toes in the investment waters.

With strategies in place and a favorable environment, St. Joe is well-positioned to ride this wave of momentum, making its stock a compelling target. It’s a good time to keep an eye on regional tourism metrics and land sale updates as they may just unlock significant potential for growth.