During the recent Art Basel event held at the Miami Beach Convention Center, Miami Beach's hospitality sector witnessed a notable surge in hotel rates and overall revenue. This prestigious art fair, a key highlight in the Americas and part of a global series with shows in Hong Kong, Paris, and Basel, Switzerland, significantly impacted local hotel economics.
On the eve of Art Basel's opening day, December 8th, Miami Beach hotels reached a remarkable peak in their Average Daily Rate (ADR), hitting $617, a high unmatched since the previous New Year's Eve's $687 rate. This figure surpassed other major event rates in the city, including the Miami International Boat Show and the Formula 1 Miami Grand Prix weekend.
The boost in ADR contributed to a record-setting Revenue per Available Room (RevPAR) of $546 on the same night, the highest for 2023 and second only to the previous New Year’s Eve. Despite these impressive figures, the overall hotel performance didn't quite reach the heights of the 2022 Art Basel event.
The attendance at the art fair was substantial, with 79,000 visitors over three days, surpassing the previous year's estimate. However, the change in the event's schedule, shifting from a Thursday through Saturday format in 2022 to a Friday through Sunday format in 2023, influenced the hotel industry's comparative analysis. When examining the key three-night periods of both years, it was found that the 2023 RevPAR was 9% lower than in 2022.
This year's highest ADR was recorded on the Thursday preceding the event, averaging $579 over the key three-night period, compared to the average of $646 for the same period in 2022. This decline in ADR and RevPAR reflects a broader trend in Miami Beach's hotel industry for 2023, which saw a 10% decrease in ADR and a 12% reduction in RevPAR up to November compared to the previous year.
For a detailed look at the impact of Art Basel on Miami Beach's hotel industry, the original article provides comprehensive insights.
Source: CoStar, MMCG
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