Hotel transaction volume in Miami reached $557 million in 2011, marking the second highest level since 2005, according to Jones Lang LaSalle’s Hotel Intelligence Miami report. The research also indicates that investor interest in the market is expected to remain high throughout 2012; transaction volumes are projected to increase by a total of 17 percent over 2011 volumes.
“Miami transaction volumes are expected to amount to $650 million in 2012, driven by real estate-owned (REO) properties from lenders who have taken ownership of defaulted properties,” says Gregory Rumpel, managing director of Jones Lang LaSalle Hotels in Miami. “Additionally, owners with non-performing assets who are unable to invest equity or restructure debt will look to the transaction market as an outlet to shed properties.”
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. Strong leisure and business demand and constrained supply additions drove up premiums as well, as the city recorded the second greatest nominal average daily rate (ADR) growth rate of 44 percent over the past decade, second only to New York.
