Miami attracts US$3.8 billion of high end hotel investment

Pictured: Rendering of Hyatt Regency Miami Riverbridge.
Miami’s Magic City status is conjuring up plenty of forthcoming hotel ventures, with at least 34 high end sites in the pipeline, according to the latest THP figures.

Our database shows that collectively a minimum of 13,247 four and five star keys are due for delivery over the next few years in the Florida, USA tourist hub.

Record demand

With investment in upcoming upscale and luxury hotels reaching nearly US$3.8 billion, the area’s accommodation industry is well prepared to serve overnight visitors, which reached a record 19.2 million in 2022 and is poised to grow further.

Newbuildings form the vast majority of sites, representing 31 of the 34 in our records, compared to just two refurbishments and one conversion. Four star properties are in the lead in terms of classification, with 71% of the high end pipeline, equating to 24 projects, while the remaining 29% (10 sites) are five star.

Delivery schedule

There looks to be an inclination towards the initial stages of hotel projects in Miami, with 50% of the high end total, representing 17 properties, in the planning phase and a further one at the vision period. Another 11 are under construction, with four in pre-planning and one in pre-opening.

In terms of delivery dates, 2024 and 2025 are the mainstay years for welcoming new hotels, with seven and eight openings due, respectively. Just three more will begin operation this year, with another trio scheduled for 2026. The remaining 13 are either planned to complete further in the future or have not yet been designated an endpoint.

Brand plans

The slight majority of projects (18) will be for independent owners or operators, but the major hotel groups still have a strong showing with 16 on our list. Hilton Worldwide and Hyatt Hotels Corporation lead the charge on three planned hotels apiece, SH Group makes the runner-up spot on two.

In terms of individual brands within these groups, only Hyatt Regency Hotels has more than one high end site on the books, with two hotel projects in the offing.

Regency redevelopment

One of the Hyatt Regency undertakings is Hyatt Regency Miami Riverbridge, slated to deliver a major 615 keys in Q4 2028. This will be the result of an agreement with Miami-based luxury hospitality and residential developer, Gencom, to redevelop downtown Miami’s Hyatt Regency Miami, activating a key piece of Miami’s riverfront.

Three skyscrapers are planned for the site, encompassing the hotel with over 100,000 sq ft of conference space, as well as multifamily apartments and serviced apartments to be housed in Towers 1 and 2, which will rise 61 stories.

Another notable newbuild will be E11even Hotel and Residences, which will see the city’s popular E11even nightclub moving into branded condo and hotel development. Property Markets Group and E11even Partners are partnering on the project to deliver a 65-storey tower in Park West, a neighbourhood northwest of downtown Miami, in Q1 2024. The upscale hotel will house 449 keys.