Spotlight On: Heiko Dobrikow, Executive Vice President & General Manager, The Las Olas Company & Riverside Hotel
December 2024 — Heiko Dobrikow, executive vice president of the Las Olas Company and general manager of the Riverside Hotel, described to Invest: the myriad avenues of growth leveraged by the hotel to maintain success, while also outlining his expectations for the future of Greater Fort Lauderdale’s hotel industry. As the chair for the Workforce Development Board of Broward, he also provided some great insight into the labor force conditions.
Could you provide an overview of last year’s operations in terms of tourist volume?
The first quarter of 2024 yielded record-breaking numbers, which is reflective of Broward County as a whole. Summer brought a typical return to normal, with lower demand. We expect the winter season to be strong again this year. Occupancy for this year is 71.6%, which is comparable to last year, with a slight dip due to competition with Miami, Palm Beach and out-of-state markets. Revenue per available room is $131.51, which we receive for every available room in the marketplace. That is strong considering the increased supply in addition to the increased demand.
What is your occupancy forecast for the next year, and will this be affected by inventory fluctuations?
The occupancy forecast for 2024 has been closely aligned with the actual data from this year, and the predictions for next year are essentially the same. We expect more inventory in the marketplace, but we don’t foresee dramatic changes. The onset of new players, like a new convention center hotel, will be a game changer and could monopolize the area and create future challenges.
The last three years have been similar in terms of growth, but the major change has been an influx of inventory. We added 2,000 new rooms this year alone. There are currently 51 properties in the pipeline, with an expected 1,490 additional rooms being added in the coming year. By 2026, we project 2,037 new rooms with 3,190 more by 2027. This surge is driven by investor confidence as well as the expansion of the Fort Lauderdale airport, which, due to international flights, has increased confidence in building more hotels.
Is the hotel observing any notable changes in terms of taxes, and is this affected by vacation rentals?
Our tourist development tax revenue is down slightly from previous years but is still at $88.5 million through August. We are beginning to approach pre-pandemic levels, and we expect the fourth quarter to be strong.
Hotels are generating more revenue than vacation rentals, and these trends are consistent with last year. While vacation rentals are not my area of expertise, they are a strong player in the marketplace, though their occupancy levels tend to underperform compared to hotels.
What is the most significant driver of tourism growth in Fort Lauderdale?
The airport continues to be the main driver of tourism. Passenger numbers are up 3.3% from last year, and while Miami remains the larger international hub, our local carriers, which include JetBlue, Southwest and Spirit, keep us competitive. With the expansion of the airport, we should see a solid increase in passengers over the next few years.
The Port Everglades is also experiencing rapid growth, with projections of 4.4 million cruise passengers this upcoming season. This year’s cruise season passenger total is up 25%, with a 34% increase in multi-day passengers. We expect similar growth moving forward, likely hitting the 4 million mark during the next season.
How has the market for advanced bookings for conventions performed recently?
We had a solid year for advanced bookings from conventions, and while future occupancy is hopeful, we did lose some conferences, though the expansion of the convention center and the opening of the Omni Hotel should improve this. By 2026, we expect more growth, with larger conventions on the books. Smaller conferences may make up for any possible future losses, but we remain concerned about future bookings at the convention center. Once the new hotel opens, we believe meeting planners will have more confidence.
In what ways is the Riverside Hotel focusing on workforce development, and how is Florida’s cost of living affecting your efforts to attract talent?
This is a critical component of our operations, and we’re focusing on bringing in Latin American workers to fill the deficit. Compared to Miami and Palm Beach, Broward has the highest unemployment rate, but the total labor force is larger. We currently have a labor market deficit, with 36,000 job seekers and around the same number of jobs available, though the market is starting to become more balanced.
The rising cost of real estate has made it challenging to attract new talent, as housing becomes less affordable. As median home prices are starting to come down, Broward remains the most affordable option for homebuyers in the area. Rent prices are still climbing, making it difficult for low-wage workers such as servers, cooks, and housekeepers to afford housing. Broward County is the first in the region to develop a 10-year master plan focused on affordable and workforce housing.
What types of roles are the most challenging to fill, and what efforts are being implemented to locate talent?
Customer service, fast food, and maintenance positions are the most advertised, but it’s challenging to find highly skilled workers in these fields. Additionally, the medical field, particularly nursing and mental health, has a high demand for workers. By 2031, we expect nurse practitioners, substance abuse counselors, and mental health professionals to be the most sought-after roles.
We use a map of unemployed and underemployed individuals to help employers target specific areas. For instance, southern hotels can focus on hiring from the red-zoned areas in their region.
Trade, transportation, and government sectors have seen the most job growth, followed by construction, education, and leisure. Meanwhile, there have been losses in manufacturing, financial activities, and IT.
How has Fort Lauderdale grown in recent years, and how has this affected residential housing?
Fort Lauderdale has transformed significantly in recent years. The economic impact of downtown is $35.7 million, with 65,000 employees and 26,000 residents, an 85% increase in families since 2018. The area has shifted from being a place for retirees and business people to a vibrant, mixed-use space similar to Charlotte, Denver, and San Diego. There is 20% GDP growth and an employment density of 33,000 per square mile. The office occupancy rate is at 73%, and Las Olas visitation is up 30% since 2018.
Downtown alone has experienced a 63% increase in population to 26,000 residents, with many young people moving in. A significant number of new residential units have been built, which is comparable to the growth seen in cities like Austin and Atlanta. However, the food and beverage scene needs further development to match the growth in housing.
What are some milestones recently achieved by the hotel?
We completed a guest room renovation this year, which was the first such update since 2014, and which involved sourcing beautiful Italian tile for the rooms. Riverside also added a new bakery and cafe along the river, and these are managed by our award-winning pastry chef who creates everything from scratch.
For more information, please visit:
https://thelasolascompany.com/
