Domestic and international tourism, international business, PortMiami, and the Miami Beach Convention Center (MBCC) represent the primary sources of demand in the greater Miami market. A period of extraordinary growth at the beginning of the millennium brought an influx of new residents, high-rise condominium towers, commercial developments, and employers to the region. RevPAR peaked in 2008 at $114 and then declined nearly 20.0% in 2009 given reduced discretionary spending by tourists and less meeting/group activity. Nevertheless, the Miami market rebounded strongly from 2010 through 2015. The city’s emerging profile as a gateway city prompted a significant amount of new hotel supply. After six years of strong RevPAR gains, many challenges affected market RevPAR in 2016, including significant new supply, the temporary closure of the MBCC, fewer foreign travelers from Russia and Brazil due to their weakening currencies, and Zika virus fears. RevPAR peaked in 2018, largely attributed to an abnormally strong peak season, as the closure of many resorts in South Florida and the Caribbean due to Hurricanes Irma and Maria displaced travelers to the greater Miami market. Despite a strong 2018, RevPAR declined in 2019 given the continued absorption of new supply.
After a record start to 2020 supported by Super Bowl LIV, which took place in Miami, the effects of the COVID-19 pandemic caused a substantial decline in RevPAR given the significant drop in occupancy, with many cancellations related to both domestic and international leisure travel and meeting/group events. Miami's resilience was evidenced by the metro area being one of the fastest rebounding markets in the nation, with 2022 RevPAR higher than the 2018 peak by nearly 20.0%, driven primarily by strong ADR increases and the shifting of travel patterns to domestic resort locations in lieu of Caribbean and European travel. However, year-to-date 2023 data indicate a decline in both occupancy and ADR, as travel patterns have normalized and many people are opting to travel internationally. Nonetheless, the long-term outlook for Miami is positive, as the market remains the gateway to Latin America and benefits from its popularity as a leisure, business, and convention destination. In addition, Miami's low taxes and tropical climate have made it attractive for companies such as Citadel to relocate to the area, and a variety of other financial, technology, and startup companies are spurring hotel demand and developer interest in constructing new lodging supply.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.