Experts talk Miami Beach hotel trends

Miami /
Feb.February 13, 2014 01:30 PM

The Miami Beach hotel sector is experiencing a strong resurgence since the recession, but several industry experts say the market still has ample room to grow.

Hotel developer Robert Finvarb and Hersha Hospitality Trust executive Robert Hazard discussed the upside of the Miami Beach hotel market during a panel discussion at Wednesday’s Marcus & Millichap’s Commercial Real Estate Forum: Florida, held at Florida International University’s North Miami campus. South Florida real estate veteran Seth Gadinsky and Kimpton Hotels executive Tom Riley also participated in the panel, which was moderated by Lifestyle Media Group editor-in-chief Kevin Gale.

The pace of growth in the city’s hotel sector is currently 4-to-5 percent ahead of Manhattan, according to Hazard, senior vice president of acquisitions and development at Hersha. Hazard’s company owns the Courtyard Miami Beach Oceanfront hotel.

Yet the South Beach area of the city needs a “dose of reality” when it comes to room rates, Hazard said.

“The pricing is pretty much out of control,” he said. “There is no market for it.”

Momentum in the city’s hotel market has shifted in favor of the mid-Beach section, where developer Alan Faena is working on the massive Faena Miami Beach mixed-use project that spans several blocks along Collins Avenue.

Faena’s development should “bring a whole new group of people” to mid-Beach, Gadinsky said. “That’s an exciting neighborhood for a jet-setter crowd.”

Finvarb, who is currently developing the AC Hotel by Marriott near the Faena site, noted even traditional hotel operators like Marriott are trying to capitalize on the area’s edginess. Marriott is partnering with developer Ian Schrager on Edition Miami Beach, the first United States version of the brand.

“I’ve worked with Marriott for 12 years,” Finvarb said. “The only way the Marriott can get cool is to acquire cool.”

One sector trend to monitor is the transition from local to “more sophisticated” hotel operators in the city, according to Gadinsky.

“There’s a gap of quality operators in Miami Beach,” he said. “Some of the spaces are beautiful and completely under-utilized.”


Related Articles

arrow_forward_ios
Dan Gelber uncut: Miami Beach mayor caught on tape courting developers for Ocean Drive takeover
Dan Gelber uncut: Miami Beach mayor caught on tape courting developers for Ocean Drive takeover
Dan Gelber uncut: Miami Beach mayor caught on tape courting developers for Ocean Drive takeover
Barry Sternlicht’s ex-wife buys condo at Glass in South Beach
Barry Sternlicht’s ex-wife buys condo at Glass in South Beach
Barry Sternlicht’s ex-wife buys condo at Glass in South Beach
Location Ventures launches sales of co-living project in Miami Beach
Location Ventures launches sales of co-living project in Miami Beach
Location Ventures launches sales of co-living project in Miami Beach
From left: Cavalli Tower with Hussain Sajwani of Damac and the Surfside condo collapse site (Damac, Wikimedia, Getty)
From Dubai to Surfside: Inside Damac’s plans to redevelop the tragic site
From Dubai to Surfside: Inside Damac’s plans to redevelop the tragic site
Philly developer Bart Blatstein buys Continuum townhome for $6M
Philly developer Bart Blatstein buys Continuum townhome for $6M
Philly developer Bart Blatstein buys Continuum townhome for $6M
Artefacto owner buys waterfront Palm Island home for $5M
Artefacto owner buys waterfront Palm Island home for $5M
Artefacto owner buys waterfront Palm Island home for $5M
Chris Bosh and the property (Getty, The Waterfront Team)
Chris Bosh’s former waterfront Miami Beach mansion hits the market for $42M
Chris Bosh’s former waterfront Miami Beach mansion hits the market for $42M
Douglas Elliman agent Oliver Lloyd buys waterfront Miami Beach teardown
Douglas Elliman agent Oliver Lloyd buys waterfront Miami Beach teardown
Douglas Elliman agent Oliver Lloyd buys waterfront Miami Beach teardown
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...