As Suzanne Amaducci-Adams wrote in a previous blog post, the average daily occupancy rate, average daily room rate (ADR) and revenue per available room (RevPAR) numbers for Miami each had a significant increase for the first seven months of 2013 over 2012. As you can see in the chart below, Miami is in outstanding company when it comes to top tourist destinations.
Source: Greater Miami Convention & Visitors Bureau
With no end in sight for the bustling Miami hotel market, hoteliers, investors and developers are anxious to get a juicy piece of the ever-expanding Miami hotel market pie. In increasing numbers, these groups are buying up properties, renovating existing hotels and announcing plans for new hotels, both large and boutique, throughout the Greater Miami area. As the recent exciting projects below indicate, the transactions are occurring all over, from Miami Beach to Miami Springs down to Brickell and Coconut Grove:
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EB Hotel at NW 46th St. in Miami Springs: Venezuela’s Eurobuilding Hotels Group opened its first U.S. property in August, the EB Hotel Miami, which is a 133-room hotel targeting business travelers. “Once we have this hotel up and running and we develop a brand, then we’ll go to New York,” Thomas Zarikian, the hotel’s general manager, was quoted as saying. “Miami’s our gateway into the U.S.”
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Aloft Hotel at 1001 SW Second Avenue near Brickell: Starwood Hotels & Resorts Worldwide’s hip hotel, which caters to young business travelers, opened in August. The Aloft brand is known for “style at a steal” that features colorful design, free high-speed Wi-Fi and a bar that’s meant to generate buzz. According to the Miami Herald, the developer of Aloft near Brickell has plans to open another Aloft in Miami Beach in December 2014 and another in Coral Gables the following year.
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Hilton Cabana Miami Beach at 6261 Collins Avenue: Hilton Cabana Miami Beach is a new oceanfront hotel set to debut in Miami Beach in December 2013. The art deco style 10-story hotel will have 231 rooms and will be located directly on the ocean. The property was originally opened as a hotel in the 1950s but was closed and gutted in 2007 for a proposed condo conversion which never materialized. The current owner purchased the property out of foreclosure in order to develop the hotel. Locals are most excited for this hotel’s opening because the gentlemen behind the growing Pubbelly restaurant empire are scheduled to run the food and beverage operations at the hotel and the restaurant will be “a Pubbelly-inspired brasserie.”
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Residence Inn Coconut Grove at 2835 Tigertail Avenue: The 140-room Residence Inn Coconut Grove sold in June, 2013 for $21.8 million (approximately $155,000 per key) to a Philadelphia-based company, Hersha Hospitality Trust. The new owner has said that it is planning for a “significant upgrade” at the extended-stay hotel beginning next year. Max Comess, a director in the hotel group at HFF, said in an email that the sale is an example of a major real estate investment trust “that was initially attracted to only Miami Beach but has since expanded their focus to Miami’s inland submarkets, many of which benefit from the same strong economic demand drivers and hotel performance.”
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Miami Beach Resort at 4833 Collins Avenue: The 424-room, 50 year old oceanfront hotel resort sold in March, 2013 to a company managed by Chetrit Group LLC for $117 million or approximately $276,000 per key. The new owner plans an extensive renovation of the resort, including a redesign of its public areas, upgrades to meeting facilities and guest rooms, and potentially new restaurant tenants. The hotel will remain operational throughout renovations.
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EAST Miami Hotel at new Brickell CitiCentre: In connection with Swire Properties’ new Brickell CitiCentre, which will be a massive mixed-used project located in the heart of Brickell, Swire Properties has reached an agreement with Swire Hotels to make EAST the hotel flagship. The EAST Miami is expected to be approximately 218,000 square feet with 263 guest rooms and 89 serviced apartments, which will also be managed by Swire Hotels. The hotel will have two restaurants and a rooftop bar, as well as meeting rooms, pool, fitness center and treatment rooms. This will be the brand’s first hotel in North America and will focus on leisure travelers, Brian Williams, Swire Hotel managing director, explained. Acknowledging that Latin American customers dominate in downtown Miami, the brand’s “eyes will be firmly focused on [the] south,” to appeal to that market “especially when they come on their shopping trips,” Mr. Williams said.
