Hotels in Miami are becoming an increasingly popular real estate investment option, new figures have revealed. According to Jones Lang LaSalle Hotels, transaction volumes are expected to reach USD 650 million (GBP 403.65 million) this year - up from USD 557 million in 2011. Gregory Rumpel, managing director of the organisation in Miami, believes this surge of activity in the hotel market is being driven by a number of different factors. "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," he commented. Mr Rumpel said transaction volumes are also being driven by "real estate owned properties from lenders who have taken ownership of defaulted properties".
He noted that healthy rate premiums and strong levels of demand for accommodation should also help make Miami's hotel market attractive to property investors. Indeed, Jones Lang LaSalle believes the short-term outlook for the sector remains extremely positive, due to record visitor numbers and continuing infrastructure investment in the region. The organisation stated Miami is on course to consolidate its status as one of the US's top investment and hospitality markets, while its economy is flourishing.
Figures from Jones Lang LaSalle Hotels show that, in the first three months of 2012, rates of revenue per available room in the city went up by one of the highest amounts in the whole country. Mr Rumpel is therefore confident the Miami hotel sector is likely to appeal to private equity funds and real estate investment trusts in particular over the next few months. This comes after figures from STR revealed that during March 2012, hotel occupancy rates in the US went up to 63.6 per cent - a trend it attributed partly to unseasonably warm weather during this period.
- Tuesday 15 May 2012