Hotel revenue in Orange County skyrockets during festival period.
In May 2025, Ocean City’s Boardwalk Rock festival had a significant impact on hotel and vacation rental revenue, with data indicating an impressive surge in year-over-year numbers. Zartico, a data research firm, reported that metrics such as nightly rates, revenue, occupancy rates, and revenue available per room (rev par) all experienced growth compared to the previous year. The revenue saw a particularly notable increase in the double digits, delighting executives at Zartico.
During the Tourism Commission meeting at the convention center, Bill Obreiter from Zartico expressed enthusiasm about the festival’s positive effects on the local economy. He emphasized the extraordinary success of the weekend of Boardwalk Rock, highlighting the substantial uptick in revenue. However, towards the end of May, there was a slight decrease in bookings from Sunday through Friday of Memorial Day week. Obreiter attributed this decline to less favorable weather conditions compared to the previous year, with Memorial Day in 2024 experiencing sunnier skies, higher temperatures, and less wind.
The average daily rate (ADR) for hotels also saw an increase of approximately 6% from the previous year, reflecting a positive trend for the industry. Interestingly, the per-night cost for vacation rentals surpassed that of hotels, averaging $298 compared to $252 for hotels. Despite a recent dip in mid-to-late summer hotel bookings, there is now a promising trajectory towards revenue growth. However, vacation rentals are struggling to match this growth, with demand remaining low and causing rates to remain relatively high. Obreiter noted that the current $511 ADR for vacation rentals might eventually normalize as demand adjusts to more affordable levels.
Looking ahead, Zartico’s projections for end-of-summer revenue suggest a decline and stabilization in September. However, they anticipate a resurgence in bookings and revenue as the festive season approaches. The data paints a positive picture for the Ocean City hospitality industry, showcasing the significant economic contributions of events like the Boardwalk Rock festival. With increasing revenues, occupancy rates, and overall growth, the future looks bright for Ocean City’s bustling tourism sector.