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Category: Hospitality Tags: Florida, Miami

Miami Hospitality Market Report

Miami Market Overview

Tourism is a cornerstone of Miami’s economy, with the market being a popular destination for both domestic and international travelers. Additionally, Miami offers a rich cultural scene, including world-class museums, galleries, and performing arts venues. Despite the market’s popularity nationwide, Miami hotels experienced significant challenges in 2023 that pulled down most KPIs.


Miami Market Performance

RevPAR experienced an 8% decrease through November 2023. This is attributed to a 6% fall in ADR and a 2% decline in occupancy. Year-to-date (YTD) demand remained unchanged compared to the corresponding period in 2022, but the increase in supply exerted downward pressure on the occupancy rate. Pricing power has been weakened by heightened competition for domestic travelers as the industry undergoes a reset following the effects of the COVID-19 pandemic. Numerous urban destinations, which faced slower recovery compared to Florida in 2021 and 2022, saw substantial growth in 2023. Additionally, there was a significant increase in cruise passenger volumes and international travel by U.S. residents during the same year.


The factors that affected Miami hotels in 2023 are expected to restrict growth in the initial months of 2024. However, hotel performance is expected to enhance as the year advances. A demand increase of approximately 3% is forecasted, but no shift in occupancy is projected due to the expansion of inventory. The absence of occupancy growth is likely to constrain rate hikes, leading to an estimated RevPAR growth of about 1% for the entire calendar year of 2024.


Miami By The Numbers | Last 12 Months | Source: CoStar Group

  • Occupancy: 71.6%
  • ADR: $220.48
  • RevPAR: $157.91
  • Rooms: 67,881



There are currently 13 properties with around 2,200 rooms under construction in Miami. This accounts for 3.2% of the existing room inventory in the market. In comparison, the nationwide rooms under construction constitute 2.6% of the total industry inventory. The pipeline in Miami prominently features Upper Upscale and Luxury properties. The Gale Miami Hotel & Residence, comprising 240 rooms, is set to open in Q1 2024, followed by the 150-room Thompson South Beach in Q3 2024.


The Dream Miami at Riverside Wharf, located on the Miami River, is planning to introduce the market’s first VIP yacht check-in experience and the largest nightclub in the U.S. upon its opening in 2025 with its 165 rooms. Additionally, the Waldorf Astoria Miami, consisting of 205 rooms, is currently under construction and expected to open its doors in 2027. The expansion of inventory is anticipated to speed up in 2024, with over 1,200 rooms set to opened during the year. Additionally, it is expected that more than half of these new rooms will be available by Q1 2024.



In 2023, trading activity decelerated as investors grappled with a decrease in RevPAR. This was coupled with increasing interest rates and more stringent lending standards. There were 25 transactions in 2023, a notable decline from the 46 recorded in 2022 and the 49 in 2021.

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