Blue Road just paid $17.5 million for a boutique hotel in South Beach, expanding its holdings on Collins Avenue, The Real Deal has learned.
The Miami development company, led by principals Jorge Savloff and Marcelo Tenenbaum, bought the Stiles Hotel at 1120 Collins Avenue from the Washington, D.C.-based asset manager, the Carlyle Group.
Blue Road, which owns the adjacent Ocean Reef Suites at 1130 Collins Avenue, paid nearly $300,000 per key for the Stiles. The company plans to invest about $2 million into renovating the hotel’s lobby, pool area, bathrooms and rooms, Tenenbaum said.
During low season, rates will be between $180 and $200 per night and during high season, from $250 to $280 per night. It will connect to the Ocean Reef Suites, which Blue Road bought in 2008 for $7.3 million.
The property will keep the Stiles name and brand, joining Blue Road’s portfolio of boutique hotels in Miami Beach. The firm also owns the Redbury South Beach Hotel, the Crest Hotel, the Berkeley and the Sadigo Hotel.
Records show the Stiles was built in 1935 and sits on a 14,000-square-foot lot. Carlyle affiliate CRP Nash LLC paid $15.5 million for the three-story, nearly 31,000-square-foot hotel in 2014.
CBRE’s Christian Charre and Paul Weimer represented the seller in the off-market sale.
Carlyle owns properties across South Florida, including the Overture Dadeland senior apartment complex in Miami, the Lauderdale Marine Center, and a 437-unit mobile home community in Boynton Beach.
Carlyle could not immediately be reached for comment.