Hotel Rate Keep Rising

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Hotel rates keep rising

BY DOUGLAS HANKS
dhanks@MiamiHerald.com

South Florida hotels boosted rates with gusto last month as the region continued its evolution 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 survey by Smith Travel Research. In Broward, the average rate grew 15 percent to $147. The higher rates did not 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, were occupancy dropped 15 points from a year ago to 74 percent. Hoteliers there blame the slowdown on continued fallout from Hurricane Wilma, which battered hotels there, swamped roads and attracted national media attention.

And the continuing upgrade of Keys hotels and the conversion of many to 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.

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.

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

Revenue-per-room, a key industry barometer, grew in two of the three markets: up 10 percent in Miami-Dade to $151, up 15 percent in Broward to $147. But it dropped 8 percent in the Keys 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 that some hoteliers said was slow, possibly due to a milder winter in the Northeast.