The sun shines on Miami’s rates

Miami’s pipeline is growing and more hotels will soon join the Hilton Miami Downtown, pictured.
Miami’s pipeline is growing and more hotels will soon join the Hilton Miami Downtown, pictured.

Miami’s pipeline is growing and more hotels will soon join the Hilton Miami Downtown, pictured. 

WHAT’S GOING ON

Miami has a reputation for being one of the most expensive cities to stay in the U.S., and one look at the city’s year-end numbers from STR shows this is still in full effect. While occupancy in Miami was only up .3 percent in December year-over-year (and actually dropped 2.7 percent in November), the Magic City’s average daily rate rose 5.1 percent by December year-to-date to $185.12, while revenue per available room shot up 7 percent over the same period, reaching $144.87. Room supply only increased 1.4 percent year-over-year, while demand steadily increased 2.5 percent. All told, Miami sold approximately 13.9 million rooms in 2014, earning over $2.5 billion.

WHAT’S NEXT

As of Q3 2014, Miami has 356 operating hotels, according to Lodging Econometrics. These properties account for 50,053 rooms, and a further 63 hotels are currently in the city’s production pipeline, which could bring as many as 12,037 new rooms to the area. Twenty-seven of those hotels are under construction now, with 18 more projected to begin in the next 12 months.

PIPELINE SNAPSHOT

* Aloft Hotel South Beach (2360 Collins Ave.; 237 rooms; scheduled to open April 2015)

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* Nobu Boutique Hotel at Eden Roc (4525 Collins Ave.; 210 rooms; scheduled to open December 2015)

* Residence Inn (9200 Collins Ave.; 175 rooms; scheduled to open March 2015)

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