Tommy Hilfiger group sells Raleigh Hotel in South Beach to Michael Shvo and partners for $103M

83-key Art Deco hotel sold for $1.24M a room, likely a record in Miami area

Miami /
Feb.February 12, 2019 09:28 PM

Tommy Hilfiger, Michael Shvo and the Raleigh Hotel

Tommy Hilfiger and Dogus Group sold the Raleigh Hotel in Miami Beach to a partnership led by New York developer Michael Shvo for $103 million.

The deal breaks down to about $1.24 million a key, one of the most expensive hotel sales on a per-room basis in Miami-Dade County.

Shvo, Bilgili Group and Deutsche Finance Group acquired the 83-room Art Deco hotel at 1775 Collins Avenue, according to a release.

The Raleigh had been closed since Hurricane Irma hit South Florida in September 2017. Hilfiger said in a statement that despite working to restore and reopen the hotel, “this was an offer we just could not refuse.” The Wall Street Journal first reported the sale.

Hilfiger’s group paid $67.5 million for the property in 2014 and planned to turn the hotel, built in the 1940s, into a private club. But the property was rumored to be for sale following Hurricane Irma a year-and-a-half ago.

Shvo, chairman and founder of SHVO, said his group is committed to “bringing about its next renaissance,” calling the hotel “a nostalgic icon and a symbol of twenty-first century style and luxury.”

His business partner in the deal, Serdar Bilgili, is the owner of the Istanbul-based real estate private equity firm BLG Capital.

The Raleigh acquisition marks the first for Shvo in South Florida. In New York, his projects include the Getty building in West Chelsea. The same partnership that acquired the Raleigh also paid $135 million for the office portion of 685 Fifth Avenue in 2018.

In Miami, the deal could mark a new per-room record for hotel trades. Billionaire Michael Dell was set to buy 1 Hotel South Beach for about $500 million, or $1.2 million per key, but that deal has not yet closed.


Related Articles

arrow_forward_ios
Jared Kushner and Ivanka Trump with Arte Surfside (Getty, Arte)

Ivanka Trump, Jared Kushner to rent luxury condo in Miami’s Surfside

Ivanka Trump, Jared Kushner to rent luxury condo in Miami’s Surfside
Images of Arte, Ritz-Carlton Residences Miami Beach, Ritz-Carlton Residences Miami Beach and One Thousand Museum (One Thousand Museum via One Sotheby's)

Buyers shift to condos as waterfront single-family luxury inventory dwindles in South Florida

Buyers shift to condos as waterfront single-family luxury inventory dwindles in South Florida
Chris Bosh and his North Bay Road home, 6396 North Bay Road (Getty, One Sotheby’s International Realty)

Chris Bosh sells waterfront Miami Beach mansion for $15M

Chris Bosh sells waterfront Miami Beach mansion for $15M
Miami-Dade condo sales and the Ritz-Carlton Residences, Miami Beach (Google Maps)

Miami-Dade condo sales and closed dollar volume jump after slow start to year

Miami-Dade condo sales and closed dollar volume jump after slow start to year
Pierre Pomerleau and Eighty Seven Park (8701 Collins Avenue, Miami Beach)

Canadian construction mogul buys another condo at Eighty Seven Park

Canadian construction mogul buys another condo at Eighty Seven Park
Billionaire hedge fund manager Dan Loeb and renderings of 6440 North Bay. (Third Point, To Better Days Development)

Billionaire hedge funder Dan Loeb buys waterfront Miami Beach estate: sources

Billionaire hedge funder Dan Loeb buys waterfront Miami Beach estate: sources
Phil Collins is in contract to sell his waterfront Miami Beach mansion amid a legal battle with his ex-wife, Orianne Bates. (Getty, Coldwell Banker Realty)

Phil Collins finds buyer for waterfront Miami Beach estate listed for $40M

Phil Collins finds buyer for waterfront Miami Beach estate listed for $40M
Miami City Ballet (City of Miami Beach, Google Maps, iStock)

Workforce housing project approved for South Beach’s Collins Park

Workforce housing project approved for South Beach’s Collins Park
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...