1 Hotel South Beach sells for $ 610 Million
February 21, 2019Host Hotels paid $610 million for 1 Hotel South Beach, marking a new per-room record for Miami-Dade hotel sales at $1.42 million a key.
Barry Sternlicht’s Starwood Capital Group and LeFrak sold the luxury beachfront hotel at 2341 Collins Avenue, according to a press release. Starwood affiliate SH Hotels & Resorts will continue to operate and manage the 429-room hotel.
Host Hotels, one of the largest lodging real estate investment trusts, owns 88 properties in the U.S. and five abroad totaling about 52,000 rooms. Billionaire Richard Marriott and his brother Bill Marriott spun the company off from Marriott International in 1993.
In South Florida, Host Hotels owns the Fort Lauderdale Marriott Harbor Beach Resort & Spa, the Miami Marriott Biscayne Bay, and YVE Hotel Miami, according to its website.
Sternlicht redeveloped the former Gansevoort Hotel property, built in the 1970s, into 1 Hotel & Homes with joint venture partner LeFrak. The hotel, which opened in 2015, features three restaurants, four pool decks, 57 cabanas and daybeds, a 14,000-square-foot gym and a 5,500-square-foot Bamford Haybarn Spa. The development also includes 155 luxury condominiums which were not of the Host Hotels purchase.
Property records show affiliates of Starwood, LeFrak and Invesco acquired the property in 2012.
Per room, the 1 Hotel South Beach sale beats the previous record of $1.24 million a key for the Raleigh Hotel in Miami Beach, which sold in February to a partnership led by New York developer Michael Shvo for $103 million.
Other top hotel sales in South Florida in recent years include Thayer Lodging Group’s $460 million purchase of Hollywood’s Westin Diplomat Resort in 2014, which broke down to about $461,000 per room.