Room rates fall in Miami, Florida

Revenue per available room is down in the city
Room rates are dropping in sun-drenched Miami, and revenue per available room is down in the city. ”Miami has been this go-go-go market and now we’ve got to take a breath,” says Gregory Rumpel of commercial property broker Jones Lang LaSalle.
Hotels there are getting burned by a fall in incoming travel from Brazil, as well as by a building boom that has added thousands of rooms to the market.
The hotel boom is ongoing, with four new hotels, boutique and lifestyle, coming to downtown Miami by 2018. Better infrastructure and a rising population are also attracting development.
In a long-forgotten stretch of downtown Miami, The Langford, for example, has been designed within a building from 1925. The property includes old-fashioned touches – 1920s-style sinks, 1940s sailor tattoo-inspired wallpaper and 1950s Cadillac headboards.
Greater Miami’s revenue per available room has fallen each month this year. In April it was the worst of all of the top 25 US markets. Marriott has commented that Miami is among its weakest US areas.
Brazilians, a major source market, are not travelling as much as before, as their currency has slumped. The result is a glut of rooms, especially at the high end.
Bloomberg / Miami Herald

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