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Hospitality Investment · Orlando

Extended Stay Hotels in Orlando — Investment Guide 2026

Extended stay hotels (7–28+ night guests) are one of hospitality's fastest-growing segments. Lower operating costs, more stable demand, and stronger margins than traditional hotels — all in a market with 75 million annual visitors plus a booming healthcare and construction workforce.

5.5–7.5%
Cap Rate Range
78–85%
Avg Occupancy
48–58%
OpEx Ratio
~75%
Lower Housekeeping Cost

Why Extended Stay Outperforms Traditional Hotels

Lower Operating Costs

Weekly housekeeping vs. daily cuts labor 40–50%. No room service, limited F&B, fewer amenities. Operating expense ratio 48–58% vs. 55–65% for traditional hotels — directly more NOI on the same revenue.

More Stable Occupancy

Extended stay guests commit to 7–28+ nights. Traditional hotels turn over daily — one cancellation, one no-show is a revenue miss. Longer stays create revenue predictability. Average length of stay runs 2–4 weeks.

Dual Demand Base

Tourism AND workforce demand. Orlando has both: theme park families wanting space and kitchens, PLUS construction crews, travel nurses, and corporate relocators who need weeks-long housing. Neither dries up when the other slows.

Post-COVID Growth Trend

Remote work permanently expanded the extended-stay market. Digital nomads, project employees, and healthcare workers all prefer extended-stay over month-to-month leases. This demand didn't exist at scale pre-2020.

Orlando Extended Stay Demand Sources

🏗️

Theme Park Construction

Epic Universe (Universal) + ongoing Disney expansions employ thousands of construction workers for multi-year projects. Many live in extended stay hotels for 6–24 months.

🏥

Travel Nurses & Healthcare

Lake Nona Medical City, AdventHealth, Orlando Health, and Florida Hospital employ thousands of travel nurses on 13-week contracts. Extended stay is their primary housing choice.

🌪️

Insurance Displacement

Hurricane and storm damage displaces homeowners for 3–6 months. Florida's storm frequency makes extended-stay insurance contracts a reliable revenue stream.

💼

Corporate Relocations

Companies relocating employees to Orlando provide extended-stay allowances. Tech, defense, and healthcare companies moving to Central Florida need interim housing for 4–12 weeks.

🎪

Convention & Event Workers

Orange County Convention Center hosts 200+ events/year. Production crews, exhibit contractors, and support staff book extended stays during multi-week setup/breakdown.

🎢

Families Near Theme Parks

Multi-generational family trips (grandparents + kids) prefer extended-stay for kitchen access and extra space. Average family vacation to Orlando is 5–7 nights.

Best Locations for Extended Stay Investment

LocationCap RatePrimary DemandNotes
Lake Nona / Medical City5.5–6.5%Healthcare workers, biotechHighest ADR, most institutional buyer competition
Convention Center / I-Drive5.5–6.5%Convention workers, touristsDual demand base, very stable year-round
Airport Corridor (MCO)6.0–7.0%Business travelers, crewsAirline crew contracts = stable monthly income
Kissimmee / US-1926.5–7.5%Construction, tourismEpic Universe work driving surge in demand
Sanford / I-4 North6.5–7.5%Logistics, warehousingLower acquisition cost, industrial workforce base

Financing Extended Stay Properties

Conventional Bank Loan

6.5–7.5%LTV 65–70%

Best for stabilized properties with 2-year P&L. DSCR ≥ 1.25x required. 25-year amortization.

CMBS (Large Properties)

6.5–7.5%LTV 65–70%

Non-recourse for properties $10M+. 10-year fixed term. Requires strong operating history and brand flag.

Bridge Loan (Value-Add)

8.5–11%LTV 65–75% stabilized

For converting traditional hotels to extended-stay format. 12–24 month term, then refinance to permanent.

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