Miami Hospitality Market Booming

20 Nov Miami Hospitality Market Booming

Real estate investors are setting their sights on Miami Beach, just in time to capture part of the market’s resurgent tourism industry. The limited supply of hotel properties on Miami Beach has caused rush for investors to get their money in while there is still room.

Most of the beachfront or near-beachfront hotels on the Atlantic Ocean side of Miami Beach are located within one of several historic preservation sites, meaning room for growth is nearly nonexistent. New construction on this stretch of sand is rare, which forces investors to renovate existing properties to increase value rather than build new resorts and hotels.

Competitive bidding has pushed some hotel properties to record highs. Establishments along the Art Deco district have undergone massive makeovers lately, including the Royal Palm and the Ritz Plaza. The resort formerly known as Gansevoort is undergoing a $100 million overhaul at the time as well.

Demand for hotel suites, dining and entertainment in Miami is more than sufficient to support more development on Miami Beach. As other sectors continue to gain financial strength, the hospitality industry is only expected to flourish even more.

The recession’s impact on Miami Beach tourism wasn’t long lasting. In 2008, the overall number of overnight visitors dipped below 4.9 million. But by the end of 2009, the total jumped back up to 5.4 million visitors, according to the Greater Miami Convention and Visitors Bureau. By the end of 2011, annual overnight stays reached over 5.5 million people.

The inflow of money to the city’s hotels, restaurants, nightclubs and stores has been consistent over the past few years, reflected in steadily increasing hotel occupancy rates. The average occupancy rate for hotels in Miami Beach was 75.9 percent, a 12-year high.

As Miami’s moment in the sun may never fade, now is the time to invest. Whether it’s local business, tourism or a home, the prices are expected to rise as improvements to the beachside retreats continue.