I agree with the high cost of the Watercolor Inn or the Pearl. There are many very affordable condos/cottages in SoWal that would have competitive/better rates with a hotel - I'm quite sure of that in any month except the 2.5 peak summer months. Even in peak months, if travelling with a family, people often need more than one bedroom. Once we found VRBO and other easy ways to rent places, we stopped going to hotels (pretty much around the world unless we're at an airport hotel and have to get up early in the morning to catch a flight). Now that our kids are older, we have to get two hotel rooms when we travel, so staying at hotels in general isn't cost effective anymore. Whether cooking or getting take-out from Publix or going to restaurants with a family every meal/most meals feels more convenient, it is a personal choice, but financially it usually makes sense to cook one's own meals. Peak season is a tough time to eat out because of the traffic/full restaurants. Somehow, I can't imagine anyone on Tripadvisor saying "you really have to stay at the Hampton Inn" rather than all the other affordable and charming places along 30A. My point in my posts is that the decision-makers need to do a very careful unbiased analysis of the market before jumping in. They may find that fall, winter and spring are likely to be booming within the next 20 years (I'm not counting on it), that the Pearl and Watercolor have a business model that enables them to make a lot of money (I have no idea what their business model is or anything about their financial statements). Even if SoWal is being controlled by rich people (And I wouldn't know that one way or another), that's not information upon which to base a solid strategic business decision.
Granted, I'm biased because all I have is my experience renting out two affordable cottages in SoWal (and I know our rates for a 3 bedroom/2 bath are less than staying at a hotel for a week off season, as are many other nice places in our community and elsewhere). I've done my own lay-person's (but somewhat knowlegable and systematic) market analysis over the years to see what my rates should be in different seasons. I know how many days a year our places stay empty, even at extremely low rates because people just aren't taking vacations in SoWal at those times. I've successfully helped family and friends find nice and inexpensive rentals along 30A. And, I, like many others, don't feel a Hampton in fits with the scenic, non chain culture of 30A. Speaking of chains, eoes anyone know why Starbucks in Rosemary Beach and Grayton Beach left - or are they still there ? Starbucks can usually make it anywhere, but doesn't look like they made it on 30A. I just remember they were in SoWal for a little while, and then they were gone.