What operating expense ratios should I underwrite for different hotel service levels in Orlando?

Operating expense ratios in Orlando hotels vary by service level across a 25-percentage-point range and directly determine whether a hotel produces investable NOI at current acquisition prices. Full-service convention hotels (restaurants, bars, meeting space, valet, concierge, spa) typically run 65–75% of total revenue in operating expenses, leaving 25–35% NOI margin. The high expense ratio reflects the labor intensity of food service, the cost of maintaining large meeting room inventories, and the franchise fee burden of Marriott/Hilton/Hyatt full-service standards. Select-service hotels (lobby bar or breakfast only, limited meeting space) run 55–65% opex, a meaningfully better NOI margin. Limited-service hotels (no restaurant, no meeting space, simplified operations) can achieve 50–60% opex ratios in well-run properties. The single largest variable within each segment is labor: Florida's minimum wage trajectory, hospitality labor market tightness following Epic Universe's 17,500+ new jobs in Year 1, and the ongoing skilled operator shortage mean that labor costs are the primary upward pressure on opex ratios. Budget for labor cost at 2026 Florida hospitality market rates, not 2022 rates, and apply a 5% annual inflation assumption for the first 3 years of any underwriting model.