Hotel Oversupply Looming in Miami?
New supply of South Florida hotel rooms is racing forward, but some are wondering if demand can keep up as the region is increasingly a world-class destination. That's why we're excited to hear from the experts at Bisnow's Miami Restaurant, Retail & Hospitality Renaissance event beginning at 7:30am tomorrow (May 14) at 1 Hotel South Beach.
Trust Hospitality CEO Richard Millard, who will be speaking at the event, tells us that over the past decade or so, the influx of new and rehabbed hotels has made South Florida a much better place to stay. "The upgrading of product here was long overdue, and Miami has truly only just become a world-class destination," he says.
Richard adds that he doesn't believe the market's on the verge of being overbuilt, but maybe it's becoming close to overpriced, as the cost of acquisition here for both raw land and or older buildings has skyrocketed, and rehab costs are escalating too. On the other hand, some markets have room for increased rates and more product, such as MIA, Pompano and even Coral Gables. Pictured: the Postcard Inn Beach Resort at Holiday Isle in Islamorada, which is owned by the Carlyle Group and managed by Trust Hospitality.
Robert Finvarb Cos president Robert Finvarb, who will also be a speaker, tells us that the additional room supply now being added in South Florida will be impactful, but the duration of the impact will vary by submarket. For instance, the added supply in South Beach, which is at the upper end of the market, will affect the unbranded stock of historic hotels that have previously flourished in spite of the lack of investment in their space.
"The markets that I feel will be more negatively impacted for a longer duration are the Brickell, Downtown and MIA submarkets," Robert says. "All this being said, South Florida will continue to grow as a global destination, and some submarkets will feel the pinch, the market as a whole will absorb the added supply and eventually grow demand." Pictured: The 194-room Residence Inn by Marriott Sunny Isles Beach, which Robert Finvarb Cos is developing at the 17700 block of Collins Ave. Join us at Bisnow's Miami Restaurant, Retail & Hospitality Renaissance event beginning at 7:30am tomorrow (May 14) at 1 Hotel South Beach. (Sign up here.)