ME Miami evidence of hot South Florida hotel market

Analysts say the arrival of Spain’s Melia brand is a sign of strength

Sep.September 11, 2014 12:45 PM

Analysts say the redevelopment of Casa Moderna into a ME by Melia property – a Spanish brand – is evidence of South Florida’s increasingly hot hotel market.

In August, developer CGI Merchant Group scored $53 million in financing for the construction of a hotel and restaurant at Casa Moderna. When it opens next spring, the hotel will feature 129 rooms – up from 56.

And since then, several major hotel sales have gone down, including a $460 million deal with Thayer Lodging Group for the Westin Diplomat Resort & Spa in Hollywood; Claremont’s $21.65 million purchase of Il Lugano Hotel & Residences in Fort Lauderdale; Blackstone Group’s $12 million acquisition of Marriott’s Residence Inn Boca Raton; and the $57.5 million deal for b2 Miami Downtown Hotel and a neighboring retail center.

“When you have that kind of growth on the top line, it’s really almost exaggerated on the bottom line,” Richard Lillis, executive vice president in the Miami-Fort Lauderdale offices of Colliers International Hotels, told the Daily Business Review. “You have pretty remarkable profit growth. That’s why you’re seeing developers now.”

ME Miami will be Melia Hotels International’s first South Florida hotel.

“Their presence in North America has been shy,” said Mario Suarez, partner at Zyscovich Architects in Miami. “But they’re beginning to look with a lot of interest.” [Daily Business Review] Christopher Cameron

Related Articles

Jeffrey Soffer and Fontainebleau Miami Beach

Jeffrey Soffer scores $1.2B refi of Fontainebleau Miami Beach

The LaLanne exhibit at The Real Deal’s event in October

Michael Shvo to unveil tropical gardens with LaLanne exhibit at the Raleigh

Hotel Morrison (Credit: iStock)

Hospitality firm buys new Hotel Morrison in Dania Beach for $28M

John Lancet of HVS and John Chang of Marcus Millichap

As hotel development ramps up, occupancy and revenue growth soften: report

The Julia hotel, Jesper Arnoldsso

SMS Lodging lists Miami Beach hotel after selling another for $21M

From left: Stambul’s Daniel Peña, Hotusa Group's Amancio López Seijas and Langford Hotel at 121 SE 1st Street (Credit: Google Maps and Hotusa)

Hotusa Hotels buys the redeveloped Langford for $37M

Jeffrey Soffer and the Diplomat Beach Resort (Credit: Getty Images)

Jeffrey Soffer in talks to buy 1,000-room Diplomat Beach Resort for under $1B: report

Cavalier and Henrosa hotels with Susan Gale of One Sotheby’s International Realty

Two South Beach hotels hit the market for $42M