From the historic district of St. Augustine on the Atlantic Ocean, to the white sand beaches of Naples, from Orlando all the way down to The Keys, new hotels are cropping up, or changing hands, everywhere you look in Florida. After two consecutive years of record-breaking tourism, Florida appears to be on track for another banner year, thanks in part to the unusually long and frigid winter which drove hoards of northerners south to the Sunshine State.
Almost every part of Florida saw a boost in tourism over the past year, but Miami stands out from the crowd. According to a CBRE report released earlier this year, Miami's hotel market ranks No. 4 in the nation (behind New York, Oahu and San Francisco), and the Miami Beach submarket in particular is second only to New York. RevPar, or the revenue per available room, for the greater Miami area increased by an impressive 10.1% between 2012 and 2013. Miami's strong performance and lack of available product has attracted a whole new breed of investors , driving up pricing on hotel product as much as 40% in some instances.
With Miami Beach largely built out, the next wave of hotel development is centered on Brickell, Downtown and even neighborhoods to the north like Edgewater and Midtown. There are at least a half dozen new hotels set to open in Miami soon: SLS and Atton Hotels are scheduled to open in Brickell in 2015; The Related Group's Hyde Hotel in Midtown is slated to open in 2016; and both Genting's Miami World Center and Swire's Brickell City Centre will have large hotel components.
While Miami Beach will always be the favored playground for international tourists, all of the new hotel development in the city's urban core will be critical to Miami's transformation into an international gateway city with a vibrant, 24/7 culture. Miami is so much more than beaches, after all.
By: Ken Krasnow
Managing Director | CBRE South Florida
Ken Krasnow is the Managing Director for CBRE’s South Florida offices. In 2013, his region executed over 1000 transactions – 175 sales, and 825 leases – with an aggregate value exceeding $2.8 billion. In addition, CBRE South Florida completed over 1,400 valuation and advisory assignments and $600 million in loan originations.