Dive Brief:
- Nationwide, ADR increased 4.5% year over year the week of Dec. 3-9, with Miami posting the highest ADR boost of any other market, according to CoStar. Miami’s ADR was up 48.8% compared to the same week in 2022, bolstered by Miami Art Week and Art Basel.
- Held Dec. 8-10, Art Basel drew some 79,000 visitors to the Miami market, including art patrons and private collectors from more than 92 countries and territories.
- Miami’s RevPAR also rose year over year for the second week of December, CoStar found. The performance gains from Art Basel prove promising for a market that has seen year-over-year declines in RevPAR and ADR each quarter of 2023. Despite the decreased performance, hospitality professionals remain optimistic about the market’s growth.
Dive Insight:
Art Basel, the self-proclaimed premier art fair in the Americas, proved advantageous for the Miami hotel industry yet again, catapulting the market to the top spot for ADR growth in the second week of December.
Some hospitality experts in the market had anticipated the surge, including Leo Reilly, investment associate at Marcus & Millichap, who told Hotel Dive at the end of November that Art Basel was slated to “be extremely in demand.”
The event saw roughly 3,000 more attendees than last year, a nearly 4% increase. That boost wasn’t as significant as the year prior, though, when the event saw a 26% increase in attendance, climbing from 60,000 attendees in 2021 to 76,000 in 2022.
2022’s numbers paced with a post-pandemic tourism boom in Miami. This year’s Art Basel attendance growth aligns with stabilizing tourism rates in the market.
Slowing tourism in Miami has resulted in decreased year-over-year RevPAR and ADR throughout 2023, though local hospitality professionals maintain that the declined performance doesn’t paint the full picture of the hotel market’s post-pandemic recovery.
Currently, RevPAR and ADR in Miami remain 14% and 20% above 2019 levels, respectively, according to CoStar data obtained by Hotel Dive. A resurgence of business travel and heightened luxury demand are driving sustained traffic to the market, experts told Hotel Dive.
