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Boom time for Florida hotel market

South Florida hotels boosted rates last month as the region continued evolving into a pricier vacation destination.

The average hotel guest paid $169 per night last month in Miami-Dade County, up $14 from February 2005, according to the latest Smith Travel Research survey. In Broward, the average rate rose 15 percent to $147.

The higher rates didn't seem to turn off travelers: Occupancy remained steady at 81 percent in Miami-Dade and 88 percent in Broward. "Weekends, we're solid sold out," said Henny Schaeffer, general manager of South Beach's Astor Hotel.

But softness continued in the Florida Keys, where occupancy dropped 15 percentage points from a year ago to 74 percent. Revenue per room - a common industry measure of profitability - dropped 8 per cent, following January's dip in bed taxes in Monroe County.

Hoteliers there blame the slowdown on continued fallout from Hurricane Wilma, which battered hotels, swamped roads and attracted national media attention.
Also, the continuing upgrade of Keys hotels and the conversion of many to upscale condo-hotels has added another hurdle to would-be Conch Republic vacations: price.

The average Keys room rented for $216 a night in February, up 9 percent from a year ago.
"I think we scared some people away with our rates," Chris Majchrowicz, general manager of Key West's Fairfield Inn.

In Miami-Dade, the Miami boat show traditionally boosts rates in February, and Miami Beach hotels expect a lift from this week's Winter Music Conference. The dance-music fest generally packs rooms with music-industry executives and partyers.

Miami-area hotels in February posted the second-highest average daily rates among the country's Top 25 hotel markets, second only to New York's $190 rate. The Fort Lauderdale area and the Florida Keys are not Top 25 markets.

Room revenue -- which measures occupancy levels and room rates - grew in two of the three markets: up 10 percent in Miami-Dade to $151, up 15 percent in Broward to $147. In the Keys, it dropped to $160.

February's high season growth for the Miami area was boosted by a slight loss in room inventory as more hotels close down for renovations or convert to condominiums.

Smith Travel reported 1.5 percent fewer rooms were available last month than a year ago. The increase also follows a January some hoteliers said was slow, possibly due to a mild winter in the Northeast.

The higher rates have helped bring in more tax dollars. Resort taxes grew 13 percent in Miami-Dade in January over a year ago, to $7.1 million, and 19 percent, to $4.3 million, in Broward. In Monroe, resort taxes dropped 3 percent to $1.3 million.