More than $500 a night? What's driving Naples' 'massive' jump in hotel, rental rates?

In March, the average daily rate paid by overnight visitors soared in Collier County.

So much so, the county's tourism consultants described it as a "massive" jump.

The rate came in 30.4% higher than in the same month last year, reaching $527.25.

That pushed the revenue per available room up to nearly $400 at the county's hotels and resorts, a nearly 27% increase from a year ago.

James Brendle, a project director for Downs & St. Germain Research, shared the good news in a monthly presentation to the county's Tourist Development Council on Tuesday, calling it "awesome."

Revenue per available room, he said, rose mostly due to the higher room rates the destination is commanding in Naples, and other desired parts of the county.

In March, the length of stay and party size for visitors didn't change much over the year, while occupancy fell a bit, with more hotel rooms and other vacation rentals to fill in the county.

In analyzing the data, Brendle said the higher room rates in part reflect the return of luxury rooms, such as those at the Ritz-Carlton, Naples beach resort , which didn't reopen until last summer, following a planned makeover and unexpected repairs from Ian.

The addition of more luxury vacation rentals, primarily single-family homes, to the market has also driven up average rates.

In general, visitors, especially wealthy ones, are spending a "higher percentage of their wallet" on accommodations, Brendle noted.

A separate report by research firm STR showed the Naples area had the highest daily rate in March out of its competitive set in Florida, which includes pricey destinations such as Palm Beach and the Florida Keys.

In Southwest Florida, March tends to be one of the busiest months of the busy season , which traditionally runs from November to April.

Overall, Collier County is in a better spot now than last year and it's "moving in the right direction," Brendle said.

Tourist tax collections on overnight stays rose by nearly 8% over the year in March, generating more than $6.86 million. To date, they're up by more than 15%, for the fiscal year.

The county charges a 5% bed tax on hotel and other vacation rentals. It uses those taxes to fund destination marketing, beach maintenance, and other tourism-related attractions and activities.

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This year, the county saw 266,200 visitors in March. While the number of visitors was down by 2% from last year, those who came here spent a lot more money.

With visitors willing to pay more for their accommodations in general, their direct spending rose by nearly 11% over the year, topping $436 million.

Total spending increased by about the same percentage, growing to more than $604.5 million.

With the pandemic and Hurricane Ian getting farther in the rearview mirror, the county is seeing a return of its "bread and butter" business, affluent travelers, who are most often traveling as couples, or families, and want to get away, Brendle said.

That includes many loyal visitors from the Northeastern and Midwestern United States, who travel here every year for a luxury beach vacation in the winter, and stay a little longer, in part to escape the cold up north.

As a native of St. Louis, Missouri, in the Midwest, Brendle said: "I would love to be down there during our winter."

This article originally appeared on Naples Daily News: More than $500 a night? What's driving Naples' 'massive' jump in hotel, rental rates?