The Real Deal New York

Battle brews for the Biltmore Hotel in SoFla

Merchants Hospitality wants to buy lease, while leaseholders plan for partner to buy out the other

June 24, 2016 07:30AM
By Ina Cordle

Biltmore Hotel (Credit: Jorge Royan)

Biltmore Hotel in Coral Gables (Credit: Jorge Royan)

From the South Florida website: New York-based Merchants Hospitality wants to pay $110 million to buy the lease for the Biltmore Hotel in Coral Gables and renovate the historic property, as the current partners plan a separate change in interest following a contentious dispute, The Real Deal has learned.

In a letter of intent for the Biltmore, signed by Merchants Hospitality president and CEO Abraham Merchant and obtained by TRD, Merchants has proposed to pay $40 million to pay off debt and $70 million to be split evenly between the 50/50 partners whose group holds the longterm lease, Gene Prescott and Robert Kay. The deal also includes at least $20 million to be spent to repair, renovate and upgrade the hotel to “luxury standards,” plus $5 million to be paid to the city of Coral Gables, which owns the hotel. [more]

MENU