Amid supply surge, 2 hotels near MIA sell for $21M
Occupancy rates fell slightly over the last year though room rates ticked up in Miami-Dade
Sunburst Hospitality Corp. sold two hotels near Miami International Airport for a combined $20.6 million, amid a surge of supply in the county.
Miami-based Demand Hospitality, led by Nitun Patel, bought the Sleep Inn Miami Airport for $10.3 million. The 119-room hotel at 105 Fairway Drive in Miami Springs was built in 1999. The price pencils out to $86,555 per key.
Nearby, Boca Raton-based Onyx Hospitality — led by Sam Patel — bought the Holiday Inn Express Miami Airport Central Miami for $10.3 million. The 110-room hotel at 5125 Northwest 36th Street in Miami Springs, built in 1986, sold for $93,636 per key.
Marcus & Millichap’s David M. Greenberg and Gabriel Shamay represented the seller and both buyers in the deals. The brokerage announced the two deals.
Both Onyx and Demand are family owned businesses. Onyx owns and operates hotels in Florida, Mississippi, Arkansas and Louisiana, and has new hotels under development in Florida, Mississippi and Tennessee, according to its website. Demand owns and operates hotels in Florida and Ohio.
Silver Spring, Maryland-based Sunburst owns hotels in California, New York and Virginia and has developed residential real estate and golf projects in Virginia and Arkansas, according to its website.
Miami-Dade County’s hotel market has seen a surge of new supply, leading to expectations of softer occupancy and revenue growth this year. In the tri-county region, the number of hotel rooms rose by 3,668 or 3.5 percent, in the first half of 2019, year-over-year.
For the 12 months ended in June, Miami-Dade’s occupancy rate dropped to 72.2 percent compared to 73.9 percent during the same period the previous year, according to a Marcus & Millichap report on the Florida hotel industry. Meanwhile, average daily rates grew by 0.5 percent to $196.08 and revenue per available room was down 1.8 percent to $151.32.
Still, South Florida hotels traded for record amounts in 2019. The biggest sale of the year was Michael Dell’s MSD Partners’ $875 million purchase of the 1,047-room Boca Raton Resort & Spa.