MIAMI—With 2,800 rooms delivered in the greater Miami hospitality market and another 2,000 more to be completed next year, what are some of the factors fueling the demand for new inventory? That's a good question for Suzanne Amaducci-Adams, the Real Estate & Hospitality practice group leader at Miami-based law firm Bilzin Sumberg.
Bilzin Sumberg's real estate and hospitality practice is one of the largest and most active in the state, with more than 40 attorneys. Amaducci-Adams has her finger on the pulse of the market, and recently opined on why we are seeing a significant rise in the number of hotel projects under development in Miami.
With regard to the factors fueling demand, she tells GlobeSt.com an increase in visitors to Miami coupled with a number of major new mixed-use and retail projects are fueling demand for new inventory. In less than a year, she notes, we've seen domestic passenger arrivals into Miami International Airport increase by more than 10% and international passenger arrivals increase by more than 6%.
"We can expect those numbers to rise with new nonstop passenger flights scheduled from Vienna, Istanbul, London, Munich, Paris, Zurich, Helsinki and Berlin," Amaducci-Adams says. "There is even talk of nonstop flights to China and Japan from Miami. Major retail and mixed-use projects in the works are also fueling demand as Miami becomes a global retail destination. These projects include Miami Design District, Brickell City Centre and Miami Worldcenter."
Larry Kahn, a vice president in the brokerage services division at CNL Commercial Real Estate, agrees. He tells GlobeSt.com the reason for new hotels is simple, customers.
"In 2015, Florida had 100 million visitors. Orlando had 62 million visitors which is the most number of visitors of any city in the world," Kahn says. "When you have customers, folks will show up to do business."
But David Young, a partner and managing director at Silverman Partners in Dallas, Texas, has some concerns. He tells GlobeSt.com, "I do not think Miami can absorb the new supply, remindful of Austin, Texas New York City is the only market that can continue to absorb supply coming online."
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