For the owners of seven prominent South Florida hotels, times have been tough along the sandy white beaches of Miami.

Hersha Hospitality Trust CEO Neil Shah told analysts this past week that Miami is among its most challenging markets and “we continue to face headwinds in operational performance for the next 12 months.”

The other problem market is New York. Among the factors Neil cited are the closure of the Miami Beach Convention Center, a stronger dollar, new hotel room supply on Miami Beach and the Zika virus.

“While we experienced some cancellation initially at our Miami Beach properties due to Zika, especially at the [Courtyard Cadillac Miami Beach/Oceanfront] given its more family and leisure focus, we’ve seen cancellations subside as media attention surrounding Zika ebbs,” Neil told his audience during the call. He adds that there has been word of large group cancellations “as corporate event planners are hesitant to send employees to Miami Beach.”

Despite those headwinds, Hersha's South Florida portfolio performed admirably so far this year—even Cadillac. Overall, RevPAR increased 2.9% to $133.80/night, which included a 127 basis point occupancy increase to 83%. Even the Cadillac Courtyard (here) saw RevPAR jump 4.1%, with the hotel adding $1.5M in revenues for the quarter.

The Marriott-flagged Winter Haven on South Beach was up 8% and Parrot Key Resort in Key West (here) reported a nearly 3% RevPAR jump, according to the call.

“Looking ahead, we expect South Florida, particularly Miami Beach, to remain difficult,” Neil says. "We look to Coconut Grove [where it owns Residence Inn Miami] and Key West to partially offset the challenges on the beach in the fourth quarter and in 2017."