BLOCK 55 Brochure

HOTEL REVENUE TRENDS

The Greater Downtown Miami hotel market is seeing a steady increase in overall revenue. Over the last five years, Greater Downtown’s hotel revenue increased by nearly 36 percent. Table 10 shows the annual hotel revenues for Greater Downtown between 2013 and 2018. Hotel revenue grew at a 6 percent Annual Average Growth Rate. Greater Downtown Miami’s hotel revenue peaked in 2018 with nearly $450 mil- lion. Every year except 2016 saw positive gains. From 2015 to 2016, revenue fell by 1 per- cent. The decrease in ADR, RevPAR, and revenue for 2016 and 2017 is attributed to Hurricane Matthew in 2016 and Hurricanes Irma and Maria in 2017. These hurricanes affected tens of thousands of flights, cruise operations, and resulted in slightly lower hotel performance for those years. There were no major (Category 4 or 5) hurricanes that made landfall in Florida or the Caribbean in 2018, which had the highest ADR and revenue in Greater Downtown and the Greater Miami market of the past five years. With PortMiami’s historic cruise passenger count, MIA’s historic arrivals, and Greater Downtown’s peak revenue all occurring in 2018, it is clear that visitors are not afraid to travel to Miami during hur- ricane season, what this means for Miami is that tourism in South Florida is more impacted by travel restrictions from major storms than the storms themselves.

The chart shows how Greater Downtown’s hotel revenue has grown in pace with hotel supply over the last five years. The chart also reflects that revenue leveled off in 2016, which has been attributed to Hurricane Matthew, but also is related to the delivery of new supply. Greater Downtown’s consistent revenue incresase from 2016 through 2018 show the market’s ability to bounce back from adversity. Greater Downtown Miami’s hotel market is rising and stable. HOTEL SUPPLY