Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, hosted the second annual South Florida Hotel Investment Forum at the Hilton Miami Airport Hotel on Oct. 19, according to Kirk A. Felici, first vice president and regional manager of the firm’s Miami office.
“Despite significant hurdles experienced by South Florida hotel owners in 2017, the event’s panel of hospitality professionals concluded that the outlook for the South Florida hotel market will be positive throughout the remainder of this year and in 2018, setting the stage for a break-out year in 2019,” says Felici.
The panel was moderated by Vinay Rama, CEO of Miami-based Mandala Holdings and led by Ahmed Kabani, first vice president investments in Marcus & Millichap’s Miami office.
“Amid recovery efforts in the aftermath of Hurricane Irma, occupancy will move up throughout the state this year,” adds Kabani. “Occupancy and revenue metrics should adjust back to normal levels by next year.”
Panelist Neil Shah, president of Hersha Hospitality Trust, commented that “the reopening of the Miami Beach Convention Center, less new supply, and a weakening U.S. dollar will set up a robust recovery in 2019.”
Keynote speaker John Lancet, managing partner for hospitality consulting firm HVS, presented an in-depth analysis of market activity in the Tri-County area so far this year and highlighted notable transactions in Broward and Miami-Dade counties.
Robert Bhat, director in Marcus & Millichap Capital Corp.’s Miami office, in his capital markets update at the event, noted that “last year, banks dominated hospitality lending and CMBS lenders cut back significantly, while this year banks have started to show greater selectivity on hotel loans. However, many local banks and some regional lenders still have an appetite for hospitality financing, especially for projects that have strong guarantors and experienced owner/operators.”
“As we do each year at this event, we a took a clear-eyed, data-driven look at the South Florida hospitality market and then focused on the outlook for the rest of the year and into the foreseeable future,” concludes Pete Nichols, vice president and national director of Marcus & Millichap’s National Hospitality Group. “Our consensus is that the South Florida hospitality market is on the path of full recovery and will have an energetic rebound.”
About Marcus & Millichap (NYSE: MMI)
With over 1,700 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed nearly 9,000 transactions in 2016 with a value of approximately $42.3 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com