The Regent Bal Harbour Hotel & Residences Celebrates its Grand Opening
March 10, 2008 by Lucas Lechuga
Yesterday afternoon, the Regent Bal Harbour Hotel & Residences (currently the Ritz-Carlton Bal Harbour) held its grand opening celebration. The Regent Bal Harbour is a 5-star hotel with world-class amenities, a 5-star restaurant and gorgeous water views from every hotel room. It will likely be a favorite amongst affluent South Florida vacationers. Prices range from $750 to $8,500 per night.
Take a look at the CBS4 video of the Regent Bal Harbour inaugeration yesterday.
I think this is another example of a project planned during the boom (economic) using extrapolation of room rates to justify building the darn thing.
It’s not a criticism of this project in particular but emblematic of what we will see much more of, worldwide. Cheap money, peak implied Return on Investments and punch extrapolations built these type of things. All three are gone.
Will people be paying those ‘bubble’ room rates in the next couple of years? I really doubt it. South Florida vacancy rates are pretty high in hotels compared to the rest of the world anyway. I don’t think the rich are immune, and even if they are, most are at least scaling back discretionary spending (unless they have EUR50m+ in the bank) .
I’m not a hotelier but travel a lot around the world on business/pleasure. Over Xmas/NY – two of the hotels I stayed in on South Beach were half empty. $750+tax a night is a London or NYC price at peak time. And that in itself is increasingly hard to justify.
I agree.
The “average joe” has been living a life he can’t afford for a very long time. There were a record number of millionaires (and even billionaires for that matter) in the last 5 years. Most of this wealth creation was due to housing appreciation. Upper middle class families saw their home appreciate from 500k (2001) to 2mil (2005). With 1.5mil of “free money” came record boat sales, record luxury car sales, and record retail sales. THIS PARTY IS OVER!
How many people can afford $700 a night? If you go to Hotel Atlantis (Bahamas), they are offering 4day/3night Packages from $399! Two years ago you couldn’t get a room under $400 a night. I feel the same will happen here. Consumer spending will constrict at ALL levels. The market is re-pricing risk and the value of a dollar is starting to be respected again.
With this said, I think the hotel looks beautiful.
Am I missing something or can you really rent 2 bedroom residence for $6,500 per month (compared to up to 8500 per night for hotel)
Margus – you’re not missing anything. Renting on an annual or even month-to-month lease will always be much cheaper than staying in a hotel.
Even the nicest buildings in Miami Beach (Continuum, etc) rent in that range.
If there is a $8,500/night room at the Regent, it must be some extraordinary penthouse palace. But anyways, I wouldn’t compare hotel rates to the monthly rate on an annual lease, or even for a short term vacation rental. Those will almost always be much cheaper on a daily basis.
Vacancies are up in Miami hotels? Even mid summer is not what is was by any stretch bargain wise a few years back. $8500 is not a valid basis for comparison or ridicule just because a handful of hotels have a handful of rooms at those kind of rates.
They are probably unfurnished units.
I think that since the room rates are so high that they should rip down the building to equalize the market.
“The Regent Bal Harbour is a 5-star hotel with world-class amenities, a 5-star restaurant and gorgeous water views from every hotel room. It will likely be a favorite amongst affluent South Florida vacationers. Prices range from $750 to $8,500 per night.”
Let’s hope the “Residences” owners are not anticipating seeing any return from a rental pool.
This reminds me of the 3-year old Ritz-Carlton (with “residences”) in Sarasota that has been put on the market twice in the last 18 months….with NO takers.
They were looking for a 2 cap-rate on the property. The hotel itself may have supported that, however, the resort amenities, supported by “memberships” won’t break even for another five years…..assuming their aggressive marketing program is successful. The prognosis is not pretty.
The “regent” name does NOT come cheaply…like the “Ritz” and the “Four Seasons”, the property owners have a “master” at the respective company’s HQ. Reducing expenses in order to enhance a balance sheet is not an option.
I wish them luck as it is a beautiful hotel!
Any news on the percentage of walkaways at the Regent Hotel?
I’ve visited the hotel and its the most ritzy and elegant i’ve ever seen in south florida. The view is the most amazing part. The food is exquisite. The service is great. I know i sound like im advertising for the Regent but it really is incredible! 🙂