RLJ Lodging Trust acquired the Hilton Cabana Miami Beach for about $72 million.
The Bethesda, Md.-based real estate investment trust announced the purchase of the 6261 Collins Avenue property on Monday. It spent about $310,000 per room for the 231-room hotel. RLJ did not obtain financing for the acquisition.
RP/WG Cabana Owner is the seller. The company is tied to private equity firm Rockpoint Group. RP/WG paid $11.3 million for the former Allison Hotel in April 2011 and made expensive improvements to the property.
Hilton Hotels & Resorts took over operations of the hotel in December 2013, according to the Daily Business Review.
“We are very excited to close on this new oceanfront hotel in the heart of Miami Beach at a significant discount to replacement cost,” RLJ Lodging president and CEO Thomas Baltimore said. [Daily Business Review] — Eric Kalis