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Wednesday, May 9, 2007

Hotel Room Rates are Going Up as Occupancy Decreases

In Miami, between the months of January and March, the top hotels room rates increased up to 13%, to an average of $200 a night. This situation is made the occupancy drop almost 3 points in Miami-Dade County. Despite the effect in the occupancy, it seems that the hotels are not planning to stop this new tendency soon. The main question is how much higher hotel managers can go? The answer to that question is far for simple because the decrease of the occupancy rates has not show its negative effects to the luxury hotel owners or investors. The result is that the luxury hotel market is still motivated since room revenues have gone up in spite of the few exclusive guests.

Another tendency is that hotel developers are buying moderate-priced hotels and motels to work on pricier new developments or condo hotels. These projects are going to start in the years to come and promise to transform our city into a more luxurious destination. The bottom line is that Miami has become almost as expensive as New York City in the tourist market, so fewer people are willing to pay the price.

But as the hotel room’s prices go up and the visitors go down there are more and more five stars projects in the South Beach and Miami Beach area. Developers and people who can afford the new rates are completely pleased. Visitors that are looking forward to exclusive destinations to relax and enjoy the beach environment will find out that Miami is the perfect place. Even more important they can find here some of the most exclusive hotels and real estate properties from around the world. People interested can buy a regular spot in a Miami condo-hotel. The Miami party scene, Miami shopping and Miami restaurants are some of the reasons why some visitors are loyal to South Beach in spite of the hotel room prices.

While investors, developers, and luxury tourist are enjoying the new trend, some of the small companies in the tourist business such as corporate group organizers are telling that their businesses are being negatively affected by the trend because more and more people is choosing other less expensive destinations over Miami.

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