The Real Deal Miami

Royal Palm in Miami Beach to become first Starwood Tribute brand

Chesapeake Lodging Trust paid $278M for 393-room oceanfront hotel
April 17, 2015 02:15PM

Adam Aron of Starwood and the Royal Palm South Beach

Adam Aron of Starwood and the Royal Palm South Beach

The Royal Palm South Beach hotel will reportedly become Starwood’s first Tribute hotel.

Starwood Hotels & Resorts Worldwide will spend $20 million to launch the portfolio, the Wall Street Journal reported. The company is aiming to have 100 independent properties join Tribute by 2020.

The hotels “will get a powerful distribution network but get to remain independent,” Adam Aron, Starwood’s interim chief executive, told the newspaper.

Chesapeake Lodging Trust, a real estate investment trust focused on high-end hotels, announced the acquisition of the former James Royal Palm for $278 million in February.

The $278 million acquisition means that the 393-room oceanfront hotel at 1545 Collins Avenue sold for more than $707,000 per room.

Don Peebles, who made an “aggressive” offer when the James was being marketed for sale, redeveloped the Miami Beach hotel and later sold it in 2005. [Wall Street Journal]Katherine Kallergis