|By Elaine Walker, The Miami
HeraldMcClatchy-Tribune Regional News
May 09, 2012--Hotel sales in Miami jumped 154 percent in 2011 and are expected to continue climbing in 2012 to levels not seen since the recession, according to a report from Jones Lang LaSalle Hotels.
The real estate advisory firm released a report showing that hotel transaction volume in Miami hit $557 million in 2011. That volume is expected to continue climbing another 17 percent to $650 million in 2012, reaching the highest level since 2005. The Downtown Miami/Brickell submarket is expected to be a prime target as investors look to opportunities beyond Miami Beach.
Much of the action in 2012 will come from properties taken over by lenders when previous owners defaulted on loans or owners with non-performing assets who are looking to unload properties rather than invest more funds.
Investor interest in Miami's hotel market is driven by a combination of strong consumer demand and limited new supply sending hotel rates rising.
"High demand levels and significant rate premiums will enable the city to maintain a strong hotel performance over the medium term, piquing investor interest," said Gregory Rumpel, Managing Director of Jones Lang LaSalle Hotels in Miami.
Miami's hotel market posted one of the highest rates of revenue per available room (RevPAR) growth of any major gateway market in the U.S. during the first quarter of 2012. Miami recorded the second greatest nominal average daily rate (ADR) growth rate of 44 percent over the past decade, behind only New York.
(c)2012 The Miami Herald
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