MIAMI—Hotels are a key component of Brickell City Centre and Miami Worldcenter, but that's not stopping other developers from getting in on a hot market. Aria Development Group, a New York and Miami-based real estate investment and development company, is also betting on the demand for hotels in the urban core.

Aria is building a hotel in Downtown Miami that's set to open in 2017. The mixed-use tower will be located at 227 Northeast Second Street and feature luxury apartments and Miami's first Yotel hotel.

“Downtown Miami is emerging as a high-energy place to live, shop and work,” says David Arditi, principal of Aria. “There is strong demand for urban-chic residential apartments, and Miami's appeal as an international destination is at an all-time high. The Yotel brand, with distribution in New York, London, Singapore, Paris, and San Francisco is a perfect fit for Downtown Miami.”

Yotel offers what it deems “affordable luxury without the clutter.” The hotel will feature 250 cabins and state-of-the-art guest facilities including restaurant and bar, pool deck, and gym. Aria is planning luxury residential units on the upper floors. Plans for the residential development at 227 Northeast Second Street will be revealed in late Spring 2015.