UPDATED, Dec. 18, 4 p.m.: 2018 proved to be an especially big year for hotel sales in South Florida with $2.8 billion in deal volume. That’s an increase of more than 340 percent from last year, according to Colliers International South Florida.
Of course, South Florida’s hotel industry was helped by the fact that no major hurricane or storm hit the region in 2018, as compared to the previous year when Hurricane Irma caused damage to existing hotels and forced closures.
Hotel sales are also increasing thanks to a boost in large institutional and private equity money flowing into the area. Warren Weiser of Colliers said he also expects more real estate investment trusts to consider investing in South Florida’s hotel market in 2019.
Overall, he said, demand for the asset class will continue to grow. “As long as long-term rates don’t skyrocket then the (hotel) sales will remain very strong,” said Weiser.
Brookfield buys Hilton Fort Lauderdale Marina for $171M
Perhaps no deal signified the big money push into South Florida more than Brookfield Asset Management’s $170.6 million purchase of the Hilton Fort Lauderdale Marina.
The Blackstone Group sold the hotel to Brookfield subsidiary Thayer Lodging Group for about $290,000 per key. The 9-acre property fronts the Intracoastal Waterway and includes a 33-slip marina.
Brookfield, one of the world’s largest asset managers with more than $285 billion in assets, also owns the Diplomat Resort & Spa in Hollywood.
Lon Tabatchnick and Starwood Capital Group sell Margaritaville Hollywood Beach Resort for $190M
Parrotheads are apparently flocking to Broward County.
In April, Denver-based KSL Capital Partners paid $190 million, or about $544,000 per key, for the Margaritaville Hollywood Beach Resort. Lon Tabatchnick and Starwood Capital Group sold the Jimmy Buffett-themed resort, a 349-room, 17-story hotel with eight restaurants and bars, an 11,000-square-foot spa, oceanside pools, a wave ride and 30,000 square feet of convention facilities.
Tabatchnick completed the $175 million development on 5 city-owned acres at Johnson Street and A1A in 2015.
AVR Realty buys Boca Raton Marriott for $69M
AVR Realty Co. paid $69.3 million for the Boca Raton Marriott at Boca Center in January, as Boca Raton continues its transformation into a corporate headquarters for tech companies.
New York-based Carey Watermark Investors sold the 256-key, 12-story hotel at 5150 Town Center Circle for about $271,000 per room.
AVR Realty, an investment and development company led by Allan V. Rose, also owns the Marriott Courtyard Convention Center Hotel in downtown Miami and apartment complexes in Davie and Pembroke Pines, according to its website.
Carey Watermark paid nearly $58 million for the Marriott in 2014.
Spanish investment group buys the Hall South Beach for $58M
In the most expensive hotel deal in Miami Beach since 2016, Spain-based Grup Peralada purchased the Hall South Beach hotel for $58.2 million.
Rockwood Capital sold the 163-key hotel at 1500 Collins Avenue to Grup Peralada for about $357,000 per room.
Grup Peralada is owned by the Suqué-Mateu family and has hotels, casino, wine and other businesses under its umbrella.
Rockwood, with offices in New York and Los Angeles, paid $34.5 million for the historic 123-room Haddon Hall and the adjacent 45-unit Camden Apartments in Miami Beach in 2013, according to data from Real Capital Analytics. The investment firm renovated the 1.4-acre property and re-opened it all as a hotel in 2015.
Fort Lauderdale Marriott Pompano Beach Resort & Spa trades for $45M
A company tied to New York-based Pan Am Equities paid $45.15 million for the Fort Lauderdale Marriott Pompano Beach Resort & Spa.
The 184,000-square-foot, 219-key hotel at 1200 North Ocean Boulevard includes about 8,000 square feet of meeting space and sits on nearly three acres of beachfront land.
An affiliate of the Carlyle Group and Urgo Hotels sold the hotel for about $206,00 per room. Carlyle and Urgo paid $8.55 million for the site in 2010 and completed the hotel in 2013, according to property records. It was the first new hotel to be built in the area since 2002.
The top 5 South Florida hotel sales in 2018
| NAME | 35XV | PRICE RANGE | From $4,055,000 to $12,650,000 |
| ADDRESS | 35 West 15th Street | SIZE RANGE | From 1,868 Sq Ft to 3,831 Sq Ft |
| TYPE | New Building | AVG PPSF | $2,675 |
| TOTAL UNITS | 55 | TAX ABATEMENT | Yes |
| DEVELOPER | Alchemy Properties | AVG COMMON CHARGE | $1.01/sf |
| BROKER | Douglas Elliman Development, Alchemy Properties | FINISHED BY | Winter/Spring 2014 |
Source: TRD analysis of brokerage data provided by Colliers International, news clips and market reports.
An earlier version of this story incorrectly identified the annual increase in hotel sales volume.