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

400 rooms are under construction and more than 12,000 are planned or proposed

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
The John Buck Company's John Buck, Florida Value Partners’ Gus Alfonso, BH Group’s Isaac Toledano and Pebb Enterprises’ Ian Weiner with rendering of the Miami Station project
John Buck JV buys downtown Miami dev site for $40M
John Buck JV buys downtown Miami dev site for $40M
MCR’s Tyler Morse, Park Hotels & Resorts’ Thomas Baltimore and the Hilton Miami Airport Blue Lagoon at 5101 Blue Lagoon Drive
MCR drops $118M for Hilton Miami Airport Blue Lagoon
MCR drops $118M for Hilton Miami Airport Blue Lagoon
Trinity CEO Sean Hehir, Related CEO Jorge Pérez, BH Group’s Isaac Toledano and the Diplomat Beach Resort in Hollywood, Florida
Trinity and Credit Suisse to buy Hollywood’s Diplomat for $850M
Trinity and Credit Suisse to buy Hollywood’s Diplomat for $850M
East End Capital’s David Peretz and Jonathon Yormak with 100 Biscayne Boulevard
East End sues ex-Australian investors in Miami office tower for $2M
East End sues ex-Australian investors in Miami office tower for $2M
Cushman & Wakefield’s David Greenberg and Christopher Passeggiata
Cushman & Wakefield hires Marcus & Millichap’s hospitality team
Cushman & Wakefield hires Marcus & Millichap’s hospitality team
From left: CP Group’s Angelo Bianco, Monarch Alternative Capital’s Michael Weinstock, MV Group USA’s Manny Varas; The Springs Circle Center at 1 South Royal Poinciana Boulevard and 69 Hook Square in Miami Springs; Citigroup Center at 201 South Biscayne Boulevard in downtown Miami (Getty, CP Group, MV Group USA, Monarch Alternative Capital)
Lease roundup: Citigroup Center in downtown Miami nabs tenants
Lease roundup: Citigroup Center in downtown Miami nabs tenants
From left: Tricap’s David Edelstein and RFR’s Aby Rosen with 2201 Collins Avenue
RFR, Tricap file dueling lawsuits for control of W South Beach
RFR, Tricap file dueling lawsuits for control of W South Beach
Jesta Group’s CEO Elliott Aintabi with a rendering of the project (Kobi Karp, Getty)
Jesta wins approval for apartment, hotel project on Shuckers site
Jesta wins approval for apartment, hotel project on Shuckers site
arrow_forward_ios

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

Loading...