A report from STR found that hotels in Miami were pulling in the highest daily room rates in the U.S. during the first quarter, even as occupancy fell as a result of increased hotel development.
The average daily room rate in the region for the period from January-March was $246.30, while first-quarter occupancy averaged 83.2 percent in Miami. This was down from 84.8 percent in 2015.
Average room rates in markets that compete with Miami included New York City ($202.07); San Francisco ($235.57); and Oahu, Hawaii ($220.41).
Miami's high rates are good news now, but the Greater Miami Convention and Visitors Bureau shows 38 hotel projects consisting of 7,472 new rooms will be coming to the city over the next three years. This, in addition to the growing popularity of Airbnb for travelers to the destination, could have an adverse effect on rate in the future.