Miami-Dade Hospitality Market Report
2023 Investment Forecast
Hotel Room Demand Reaches All-Time High;
Supply Growth Negates Occupancy Gains
Improvements in foreign and business travel help sustain room demand. Foreign arrivals to Miami International Airport increased by more than 70 percent in 2022 relative to the previous year, lifting total passenger counts to the highest measure on record. Simultaneously, visitor volumes at the Port of Miami improved nearly five-fold when compared to 2021. This massive influx of travelers jolted local hotel demand to unprecedented levels, with the total number of booked room nights exceeding 17 million over the trailing 12-month period ending in December. In response, hotel revenues rose by more than 20 percent, with the figure eclipsing $180 per available room late last year. While macroeconomic headwinds — such as slowing employment growth and widespread inflation — are expected to tighten consumer budgets and reduce leisure travel in 2023, improving volumes of international tourism, along with business travel, should help make up for the slowdown in domestic vacationers. In fact, total occupied room nights are projected to exceed last year’s total, setting a new record. However, robust supply growth will place downward pressure on occupancy, resulting in the rate remaining below pre-pandemic levels.