High Season Comes Early this Year
As the peak of real estate season approaches here in Miami we take a look at how the Market is changing and how High Season is starting sooner each year in South Florida. Worldwide Properties has already seen an uptick in real estate activity in the luxury market and we are two months away from the traditional High Season months of December through March in Miami. The Condo/Hotel market has seen tremendous growth, and as such, it is no surprise we are seeing entire Condo/Hotels trading, a reflection of Miami’s soaring demand in tourism as a national and international destination.
A Closer Look at Why Condo-Hotels are Being Bought Up in Miami Beach – 1 Hotel South Beach
Just published in the Real Deal this past month the I Hotel South Beach went Under Contract for a Record-Breaking $500 Million which equates to approximately $1.2 million dollars per room key roughly. The Buyer MSD Capital and its chairman Michael Dell of Dell Technologies will set a Hotel Sales record in Miami if the deal goes through. This sale reflects a strong Hotel market as investors, at the institutional level, seek to capitalize on the Miami Beach real estate market and its ever-growing global destination. As a side-note, here’s a perfect opportunity to indulge in the 1 Hotel experience! Worldwide Properties is currently offering Residence #918 as a seasonal rental for Art Basel for $18,000 per month at the 1 Hotel South Beach.
CLICK HERE for additional details about this 1 Hotel Worldwide Properties Seasonal Rental.
Want To Own Your Own Condo-Hotel Unit?
You don’t need to buy an entire building to invest in a Condo-Hotel. There are many opportunities throughout Miami Beach where you can enjoy the income of your very own Condo-Hotel unit. These can make great investments while still being able to enjoy the Condo-Hotel for your own personal use while on vacation, or even for just a quick weekend getaway, and still reap the income when you’re away. Worldwide Properties just launched to market a rarely available ocean-front two-bedroom Condo-Hotel unit in Miami Beach’s most prestigious and sought-after neighborhood, South of Fifth. One of the most exciting things about this offering in addition to its location is its LOW HOA FEES in relation to its HIGH INCOME gaged at approximately a 6% CAP RATE. It’s a must see! Now please keep in mind, It must be noted that not all Condo-Hotels have proven to be profitable for the individual condo owners. We urge you to sit with a professional agent that has at least five years of experience in the Miami Beach market, particularly with Condo-Hotel sales transactions. If you don’t know an agent with such qualification, Contact Us and our Condo-Hotel specialists will be glad to provide you with advice.
Here are Some Tips to Closely Look at when Considering a Condo-Hotel Investment:
- Does the owner have the right to rent on its own or must use the Hotel RMA (rental management agreement)
- Look closely at the RMA and ask in detail what other fees are due to the Hotel, in addition, the typical 60/40 revenue split between Hotel and Condo Owner
- If electing to use the RMA and not rent on your own or with a Broker, ask in detail the Hotel’s policy on owner-reserved dates for personal use vs’ Hotel Black-Out Dates where the owner wouldn’t be allowed to use the condo under the RMA
- If available, carefully analyze the occupancy and rental performance history of the prior two years
- The HOA monthly common area charges are also an important component as this will impact the bottom line. Some HOA’s can be high, but still may make seance if the rental rates are equitable
- If renting on your own, you will need to open an account with the local and Florida resort tax municipalities where you will remit the taxes paid by your tenants. If using the Home Away or Airbnb platforms, these platforms now automatically deduct the taxes paid by the tenants and pay the respective municipalities on your behalf, eliminating this task for you while providing quarterly statements of the same for you.
Worldwide Properties also has a Property Management Division, where we offer our investors care-free real estate holding cycles until the investor wishes to sell and cash-out or reinvest via a 1031 exchange guided by our experts.
Hotel Occupancy Rates in Miami for Q2/2018
For the second quarter of 2018, the Miami-Hialeah metro area had the second-largest increase in average daily rates and the third-largest rise in RevPAR across the nation. The Miami-Dade occupancy rates had a slight dip of 0.3% year-over-year to 72.4% occupancy but Revenues per Room saw a 6% gain compared to last year. Overall, hotels across South Florida had a higher occupancy percentage compared to the average occupancy rate across the nation during the Q2 of this year, at 70.2%, up 1.1% from Q2/2017.
More Stats + Record-Breaking Tourism Boosts Hotel Sector
According to the Greater Miami Convention & Visitors Bureau recently release Tourism Numbers Miami average hotel room rate rose by 11.8% and revenue per available hotel room (RevPar) shot up 16.6%, in the first quarter of this year compared to the first quarter of last year, according to statistic compiled by Smith Travel Research. Hotel occupancy rates in Q1 of 2018 rose 4.3% compared to the first quarter of last year as well. Greater Miami’s hotel performance in the first quarter positions the region as the number one location across all three major hotel metrics among the top 25 markets in the U.S. With the completion of the Miami Beach Convention Center and 20 future conventions on the books hotel occupancy is anticipated to continue to rise.
Just Announced: Waldorf Astoria Coming to Miami
Condo-Hotel projects are on the rise in Miami. Recently announced to be developed in downtown Miami will be the arrival of Waldorf Astoria planned at 300 Biscayne Boulevard. Anticipated to break ground next year, the Miami Waldorf Astoria building will rise over 1,000 feet and consist of 140-key hotel rooms and 400 condominiums. Synonymous with Luxury, the Waldorf Astoria project will dramatically change the downtown Miami skyline and attract visitors from around the globe and further elevate Miami as a top destination.
Contact us Today to place yourself on the waitlist for first-tier pricing if the Waldorf Astoria is on your list of top picks! Worldwide Properties successfully orchestrated the purchase of twelve condos, an investment totaling over $10M, for an investment group out of Southeast Asia at the SLS LUX Condo-Hotel in Brickell, and we’d be happy to share this recent success story with you for your consideration.
ABOUT WORLDWIDE PROPERTIES
Worldwide Properties is a full-service residential and commercial brokerage firm located in South Beach’s chic South of Fifth neighborhood. Our world-class sales and marketing teams of brokers and real estate associates represent the most elegant and luxurious private homes, condominiums and commercial projects in South Florida and the Caribbean.
Our vast international network of contacts and clients in the United States, Caribbean, Europe, Asia, and South America can depend upon our highly experienced, multi-lingual sales teams to plan and execute strategic acquisitions of the most exclusive and exquisite real estate worldwide.
Worldwide Properties is located at 225 Collins Avenue, Ste 101, Miami Beach, FL.
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