Downtown Miami’s hotel pipeline could more than double existing supply: report

Miami /
Mar.March 21, 2019 03:30 PM

A rendering of Waldorf Astoria in downtown Miami (Credit: ArX Solutions)

UPDATED, March 22, 2:20 p.m.: Developers are banking on rising demand for hotels in Greater Downtown Miami, where the pipeline of new development includes more than 12,000 hotel rooms spread across 43 projects.

A new report from the Miami Downtown Development Authority found that the number of rooms planned – nearly 4,000 – and the number of rooms proposed – roughly 8,200 – would lead to more than doubling the existing supply of 8,121 rooms in Brickell, downtown Miami, the Arts & Entertainment District, Edgewater, Midtown, Overtown and Wynwood.

Roughly 400 rooms are under construction: a Hotel Indigo in Brickell with 230 rooms, and an AC Hotel by Marriot with 153 rooms in Edgewater.

The rise in hotel construction comes as those neighborhoods experience a boom in residential development, and as major mixed-use projects like Miami Worldcenter, Brightline’s MiamiCentral and phases of the Design District get completed.

It also comes amid growing competition from short-term rental companies like Airbnb.

After a few slow years, Miami’s hotel market is showing slight signs of recovering. The average daily rate for hotels in the region dropped in 2016 and 2017, but rose more than 6 percent last year to nearly $200 a night, according to data from STR.

Still, the question remans whether demand can keep up with supply.

Hotel occupancy in the greater Miami market fell in 2015 and 2016, but has been on the rise since 2017. Yet, the growth in occupancy slowed last year, from a 1.3 percent year-over-year increase in 2017 (up to 76.5 percent occupancy) to only 0.2 percent by the end of 2018, to 76.7 percent occupancy, the data shows.

Some hotel projects in the pipeline include the hotel components of condo-hotels, like YotelPad Miami and the Waldorf Astoria Hotels & Resorts, both in downtown Miami. Aria Development Group and AQARAT recently started construction of YotelPad, a 31-story tower with 231 condos and 222 Yotel “cabins,” or small hotel rooms, at 227 Northeast Second Street. The Waldorf project has not yet broken ground.

The Miami market also has two major convention center hotels planned: an 800-key hotel next to the Miami Beach Convention Center and a 1,700 room hotel at Miami Worldcenter.

Correction: An earlier version of this story used previous condo and hotel room figures for YotelPad Miami. 


Related Articles

arrow_forward_ios
Photo of the new Aston Martin DBX and the Aston Martin Residences (Aston Martin)

Aston Martin Residences unveils DBX SUV, included with purchase of luxury condo

Aston Martin Residences unveils DBX SUV, included with purchase of luxury condo
Diego Lowenstein, Dayssi Olarte de Kanavos, Paul Kanavos, and Ronny Ben Josef, with The The Sagamore (Credit: The Sagamore Hotel)

Owners of Ritz-Carlton South Beach and Bal Harbour hotels merge with Sagamore

Owners of Ritz-Carlton South Beach and Bal Harbour hotels merge with Sagamore
Alex Sapir and Bella Sapir (Credit: Mark Von Holden/WireImage via Getty Images, and ADRIEL REBOH/Patrick McMullan via Getty Images)

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside
Pharrell, Eric Birnbaum and David Grutman with a rendering of the hotel (Getty, Linkedin, Goodtime Hotel)

Pharrell, David Grutman partner with developer to launch South Beach hotel

Pharrell, David Grutman partner with developer to launch South Beach hotel
Placeholder image

Miami board approves plans for Related, Crescent Heights towers and rejects Melo’s proposal

Miami board approves plans for Related, Crescent Heights towers and rejects Melo’s proposal
Starwood CEO Barry Sternlicht, InTown Suites CEO Ash Kapur and 1071 NE 28th Avenue in Homestead (Getty, Google Maps)

Starwood scores $265M refi for portfolio of InTown, Uptown hotels

Starwood scores $265M refi for portfolio of InTown, Uptown hotels
Jon Paul Perez and Russell Galbut with renderings of the projects

Related, Crescent Heights and Melo Group seek approval for Miami projects

Related, Crescent Heights and Melo Group seek approval for Miami projects
Lord Balfour Hotel

Mezz lender forecloses on Ocean Drive hotel in South Beach

Mezz lender forecloses on Ocean Drive hotel in South Beach
arrow_forward_ios

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

Loading...