Miami hotel industry sees lift following storm-battered hurricane season

Growth was second in the nation to Houston

Miami /
Jan.January 22, 2018 04:50 PM

Hurricane Harvey (Credit: Wikimedia Commons)

Miami’s hotel industry had one of the strongest fourth quarters of any market in the country last year, on increased demand following the devastation from Hurricane Irma in September.

Revenue per available room — a widely used metric of the market’s health — shot up 16.3 percent to $152.42 from October through December. That’s about four times the growth in RevPAR nationwide over the same period in 2016, according to hospitality tracker STR.

The Miami/Hialeah market also posted the second-highest increases in two other metrics. Occupancy climbed 9 percent to 77 percent, and average daily rate rose 6.6 percent to $197.82. Hotels likely saw a boost following Irma, from people who were displaced from their flooded or devastated homes in the Keys, and some in Miami.

Miami trailed only Houston, which sustained severe damage from Hurricane Harvey in August. It posted double-digit increases in all three metrics, including a 40.9 percent growth in RevPAR to $79.82. That’s largely attributed to demand from hurricane victims, relief workers, and insurance adjusters, and other hurricane-related business, according to STR.

Local markets affected by Hurricane Harvey and Irma weren’t the only ones that saw increased business.

The overall U.S. hotel industry posted new records on those same metrics in the fourth quarter.

Nationwide, occupancy inched up slightly to 65.9 percent, ADR grew 2.1 percent to $126.72 and RevPAR climbed 3 percent to $83.57. All three figures were the highest recorded by STR. There were also records in supply and demand. There were 1.87 billion room nights available, and $1.23 billion room nights sold.


Related Articles

arrow_forward_ios
A photo illustration of Icon on 8's planned short-term rental hotel along with the current site at 930-950 Southwest 8th Street in Little Havana (Getty Images, Icon on 8, Google Maps)
LA developer plans Little Havana short-term rental hotel
LA developer plans Little Havana short-term rental hotel
Developer Jeffrey Soffer and the JW Turnberry resort at 19999 West Country Club Drive in Aventura (Getty, TripAdvisor)
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Frank Pellegrino Jr. with Loews Miami Beach and Loews Hotel owner Jonathan Tisch (Rao's, Google Maps, Getty)
Iconic NYC eatery Rao’s to open at Loews Miami Beach
Iconic NYC eatery Rao’s to open at Loews Miami Beach
G6 Hospitality CEO Rob Palleschi and the Motel 6 at 825 East Dania Beach Boulevard (LinkedIn, Google Maps)
Blackstone sells five South Florida budget hotels for $61M
Blackstone sells five South Florida budget hotels for $61M
Hyatt CEO Mark Hoplamazian and Gencom Founder and Principal Karim Alibhai with a rendering of the proposed three-tower development at 400 Southeast Second Avenue (James L. Knight Center) (LinkedIn, Gencom, Arquitectonica)
Hyatt, Gencom score Miami commission approval for James L. Knight Center referendum
Hyatt, Gencom score Miami commission approval for James L. Knight Center referendum
NR Investments' Ron Gottesmann and Nir Shoshani (top) and a rendering of  the development in Allapattah (NR Investments, DPZ CoDesign)
NR Investments wants to build mixed-use complex in Miami’s Allapattah
NR Investments wants to build mixed-use complex in Miami’s Allapattah
Domenic Gatto and Banyan Cay Resort and Club (Linkedin, Banyan Cay, Illustration by The Real Deal with Getty)
Developers of troubled West Palm resort project facing $61M foreclosure
Developers of troubled West Palm resort project facing $61M foreclosure
Jamestown CEO Matt Bronfman and the 727 Collins Apartments at 727 Collins Avenue in Miami Beach (Getty, Google Maps, Jamestown)
Former low-income South Beach apartments hit market as possible hotel conversion
Former low-income South Beach apartments hit market as possible hotel conversion
arrow_forward_ios

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

Loading...