Why South Beach
South Beach Miami is one of the most famous Tourist Destinations in the US. Miami is a gateway market that attracts nearly an equal amount of domestic and international visitors annually. The areas favorable weather and proximity to South America is one of the main reasons for the area outpacing most of the Country.
Based on strong location characteristics and demand generators, Miami Beach, and more specifically the South Beach market, will continue to improve over the foreseeable future. The hotel market is once again
re-positioning itself to include a larger supply of luxury or boutique brands on non-ocean front parcels. With the ocean front about fully developed the only new inventory is occurring upon the demolition or renovation of an existing structure.
Greater Miami and the Beaches finished the year 2017 with an Occupancy rate of 76.7%, which was an increase of +1.5% versus 2016. Hotels in Greater Miami and the Beaches had an ADR of $188.81.
The hotel market has continued to expand at an accelerated rate since 2009. Nearly 10 to 12 million people visited the South Beach market annually, with close to 6 million staying in the area hotels.
Through May 2018, Miami Beach is posting an overall occupancy rate of 82.3%, which is up 4.4% over the same time period in 2017. The ADR and RevPAR (Revenue Per Available Room) are up 13.1% and 18.0%respectively.
• Miami Beach continues to be the engine that powers the economy of South Florida, and more specifically Miami-Dade County. The successful redevelopment and revitalization of Miami Beach during the past few decades has served as a key catalyst for the further revitalization of neighborhoods and commercial districts throughout the region. With a total retail trade of $2 billion, of which, a large portion is attributed to tourism, Miami Beach continues to be the economic pillar of the local, Miami-Dade County, economy.
With the enormous growth over the past few years, huge value appreciation potential and an increasing profile as an international luxury destination in the country, Miami Beach has seen record-breaking investment in hotels. From both development and transaction standpoint, hotel values in Miami Beach have never been higher, routinely reaching all-in costs in excess of $500,000 per key, for oceanfront inventory, and over$400,000 per key for non-ocean front properties.