If you have been following us here on the New Miami Blog, you know
(i) the hotel market in Miami is seemingly getting hotter every month and
(ii) Miami is one of the most active hotel investment markets in the country.
The New York Times recently noted that “real estate investors seem to be flocking to Miami Beach, in hopes of capturing part of the market’s resurgent tourism industry by acquiring, or by expanding their investments in, the limited supply of hotel properties.” In The Bilzin Sumberg New Miami Investment Survey, Real Estate Partner Suzanne Amaducci-Adams offered her take on the impact of tourism in Miami and on the hotel market, as well as her view on the hotel investments market:
“The impact of tourism on the South Florida economy is pervasive. When tourism is up, the demand for and price of hotel rooms rises, and with it, the demand for associated amenities, such as restaurants and spas, which drives revenue. Increased and sustained revenue stimulates jobs and investments in hotels. Today, hotels are considered to be among the region’s most sought-after assets as foreign and domestic buyers look for high-performing, quality projects. A recent report shows that since 2000 Miami has been one of the most active hotel investment markets in the country with over $3.4 billion in transaction volume. In 2011 we witnessed the second-strongest year in deal-volume history, with $557 million in sales – a 154% increase – that year alone. As a result, we are seeing more hotels change ownership and new hotels come to the market.”
The following recently released numbers from Smith Travel Research for the year 2012 reflect the increased Miami hotel performance that should attract even more investors in 2013, as the Greater Miami and Miami Beach market is now the #4 market for each of Rev Par, Daily Room Rate and Average Daily Occupancy:
JANUARY – DECEMBER 2012
REVENUE PER AVAILABLE HOTEL ROOM (REV PAR)
|
Market |
$ |
% Change vs. 2011 |
|
1. New York |
$210.56 |
+6.1% |
|
2. Oahu Island |
$155.37 |
+16.7% |
|
3. San Francisco |
$137.99 |
+12.8% |
|
4. Miami |
$124.92 |
+7.9% |
|
5. Boston |
$114.00 |
+8.3% |
AVERAGE DAILY ROOM RATE
|
Market |
$ |
% Change vs. 2011 |
|
1. New York |
$251.59 |
+2.9% |
|
2. Oahu Island |
$183.51 |
+11.2% |
|
3. San Francisco |
$171.72 |
+10.8% |
|
4. Miami |
$163.59 |
+6.6% |
|
5. Boston |
$158.68 |
+7.2% |
AVERAGE DAILY OCCUPANCY
|
Market |
% Occupancy |
% Change vs. 2011 |
|
1. Oahu Island |
84.7% |
+4.9% |
|
2. New York |
83.7% |
+3.1% |
|
3. San Francisco |
80.4% |
+1.7% |
|
4. Miami |
76.4% |
+1.3% |
|
5. Los Angeles |
75.4% |
+5.1% |
Stay tuned for upcoming blog posts where we will delve deeper into many of the exciting recent hotel happenings in Miami, including:
(i) the upcoming rebranding of the Perry South Beach to a new luxury eco-friendly brand – “1 Hotel and Residences South Beach”
(ii) the openings of two new boutique hotels: Hotel Lorenzo South Beach and Vintro Hotel South Beach
(iii) the Hotel Nash up for sale
(iv) the recent $100M purchase of the Crown Apartments in Miami Beach with plans to become a Roosevelt Hotel modeled after L.A.’s Hollywood Roosevelt and
(v) an affiliate of the Related Group’s plan for a new hotel in the Brickell financial district.
