A period of extraordinary growth at the beginning of the millennium, coupled with Miami's emerging profile as a gateway city, brought an influx of new residents, commercial developments, and new supply to the market. Domestic and international tourism, international business, PortMiami, and the Miami Beach Convention Center (MBCC) represent the primary sources of demand in this market. Storm-related demand is also a factor, such as in 2018 when Hurricanes Irma and Maria displaced travelers into the market. Miami was one of the fastest markets to rebound following the pandemic, with the 2022 RevPAR nearly 20.0% higher than the 2018 peak, driven by the shifting of travel to domestic resort locations in lieu of Caribbean and European destinations. The 2023 RevPAR level fell by almost 7.0%, as international destinations regained popularity. Data for 2024 illustrate a slight increase in occupancy and a stable ADR, reflecting a normalization of the substantial growth registered over the last few years. The outlook is best described as cautiously optimistic. While Miami remains the gateway to Latin America and benefits from its popularity as a leisure, business, and convention destination, the significant new construction pipeline and various redevelopment projects occurring in both Downtown and Miami Beach may temper future occupancy and ADR growth.

* 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.

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