The Real Deal Miami

Canyon Ranch in Miami Beach to be renamed, will lose former affiliation

Z Capital, Amanresorts founder and the Setai developer to manage resort

January 12, 2015 05:12PM
By Ina Cordle and Katherine Kallergis

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Canyon Ranch and Z Capital CEO James J. Zenni

Canyon Ranch and Z Capital CEO James J. Zenni

Canyon Ranch Hotel & Spa in Miami Beach will be renamed The Carillon Hotel & Spa when Z Capital Partners closes on its purchase, as early as this week, The Real Deal  has learned. The resort will lose its former affiliation with Canyon Ranch.

In a letter emailed to residents and obtained by TRD, Z Capital Partners’ Managing Director and Operating Partner Thomas Wicky said the Chicago-based private equity firm is “working through licensing and administrative matters” as it expects to close the purchase “very soon.” Requests for interviews with Z Capital were denied, pending the closing.

Z Capital won bankruptcy court approval in New York in November 2014 to take over Canyon Ranch Hotel & Spa, at 6801 Collins Avenue in Miami Beach — including the right to run hotel operations, according to court records. Z Capital Partners bid $21.6 million in August 2014, and took control over the hotel’s 13 unsold units, the hotel’s common area, spa, pools, retail spaces and gym. Condominium associations opposed the auction results and had filed a lawsuit against the bankruptcy debtor.

Once Z Capital takes possession, it will immediately change the name of the property, which was formerly called the Carillon. The resort will be managed by a new joint venture created by Z Capital, together with Adrian Zecha, founder of Amanresorts and GHM Hotels and Jonathan Breene, developer and creator of The Setai, South Beach, Wicky said in the letter.

“We plan on retaining the entire on-site Canyon Ranch employee team,” he wrote. “Once we have had the opportunity to refresh some of the spaces on the property, we will fully rebrand later this year and launch a new five-star flag operated by our joint venture.”

Wicky’s background includes managing properties such as The Breakers in Palm Beach, and he said that each partner in the venture “brings years of experience building tremendous value at similar world-class resorts.”

Wicky said that Z Capital had hoped to retain Canyon Ranch at the property, but “unfortunately, due to circumstances outside of our control, specifically related to the ongoing disputes between the condominium associations, the former property owner and Canyon Ranch, retaining Canyon Ranch at this property was not a viable option.”

The waterfront resort will continue to offer amenities including a spa facility and a gym and various fitness activities. Other plans, according to the letter, include redefining and enhancing the restaurant offerings, developing a viable retail destination and updating the hair salon, Wicky wrote.