Skift Take
There’s no room for new hotels in Miami, but that won’t stop hoteliers from seizing the opportunity to make a profit off a recent boom in tourism. These hotel facelifts will continue to drive room rates in the city.
Real estate investors seem to be flocking to Miami Beach, in hopes of capturing part of the market’s resurgent tourism industry by acquiring, or by expanding their investments in, the limited supply of hotel properties.
Decades of development have built up most of the potential hotel sites in Miami Beach, and virtually all of the beachfront or near-beachfront hotels on the Atlantic Ocean side of Miami Beach fall within one of several historic preservation districts. Those factors make new construction a rarity. Instead, investors seeking a piece of the hospitality pie typically acquire one of the many hotel properties on or near the waterfront and renovate to increase value and command higher room rates.
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Photo credit: The beachfront Colony Hotel in Miami Beach, Florida. Ed Schipul / Flickr.com