Host Hotels buys Sternlicht’s 1 Hotel South Beach for $610M, setting new record

429-room hotel sold for $1.42M per key

Miami /
Feb.February 20, 2019 01:30 PM

Barry Sternlicht, Richard Marriott and 1 Hotel South Beach (Credit: Twitter)

Host Hotels paid $610 million for 1 Hotel South Beach, marking a new per-room record for Miami-Dade hotel sales at $1.42 million a key.

Barry Sternlicht’s Starwood Capital Group and LeFrak sold the luxury beachfront hotel at 2341 Collins Avenue, according to a press release. Starwood affiliate SH Hotels & Resorts will continue to operate and manage the 429-room hotel.

Hodges Ward Elliott brokered the deal.

The property was previously under contract to billionaire Michael Dell’s MSD Capital for about $500 million, or more than $1 million per key, the Commercial Observer reported in September, but that deal fell through.

Host Hotels, one of the largest lodging real estate investment trusts, owns 88 properties in the U.S. and five abroad totaling about 52,000 rooms. Billionaire Richard Marriott and his brother Bill Marriott spun the company off from Marriott International in 1993.

In South Florida, Host Hotels owns the Fort Lauderdale Marriott Harbor Beach Resort & Spa, the Miami Marriott Biscayne Bay, and YVE Hotel Miami, according to its website.

Sternlicht redeveloped the former Gansevoort Hotel property, built in the 1970s, into 1 Hotel & Homes with joint venture partner LeFrak. The hotel, which opened in 2015, features three restaurants, four pool decks, 57 cabanas and daybeds, a 14,000-square-foot gym and a 5,500-square-foot Bamford Haybarn Spa. The development also includes 155 luxury condominiums which were not of the Host Hotels purchase.

Property records show affiliates of Starwood, LeFrak and Invesco acquired the property in 2012.

Per room, the 1 Hotel South Beach sale beats the previous record of $1.24 million a key for the Raleigh Hotel in Miami Beach, which sold in February to a partnership led by New York developer Michael Shvo for $103 million.

Other top hotel sales in South Florida in recent years include Thayer Lodging Group’s $460 million purchase of Hollywood’s Westin Diplomat Resort in 2014, which broke down to about $461,000 per room.


Related Articles

arrow_forward_ios
Opterra Capital buys Holiday Inn & Suites Boca Raton for $13M
Opterra Capital buys Holiday Inn & Suites Boca Raton for $13M
Opterra Capital buys Holiday Inn & Suites Boca Raton for $13M
The partially collapsed 12-story Champlain Towers South condo building (Getty)
Inside the tug-of-war over the Surfside condo site’s future
Inside the tug-of-war over the Surfside condo site’s future
Rendering of the proposed Bulgari Hotel (Bulgari)
Setai Miami Beach owners and condo association sue city over Bulgari hotel height increase
Setai Miami Beach owners and condo association sue city over Bulgari hotel height increase
Louis Puig and 333 Jefferson Avenue in South-of-Fifth (Google Maps)
Former Club Space owner buys South Beach apartments for short-term rentals
Former Club Space owner buys South Beach apartments for short-term rentals
Nadim Ashi of Fort Partners with the hotel (Four Seasons, Fort)
Fort Partners buys Four Seasons Brickell hotel for $130M
Fort Partners buys Four Seasons Brickell hotel for $130M
Moishe Mana and the downtown parking lot he purchased (Google Maps, Getty)
Moishe Mana expands downtown Miami assemblage with $12M purchase
Moishe Mana expands downtown Miami assemblage with $12M purchase
Steven Witkoff and 700 North Miami Avenue (Google Maps)
Witkoff, Monroe pay $94M for site of canceled Marriott hotel at Miami Worldcenter
Witkoff, Monroe pay $94M for site of canceled Marriott hotel at Miami Worldcenter
Pebblebrook Hotel Trust President and CEO Jon Bortz with Margaritaville Hollywood Beach Resort (Margaritaville, Pebblebrook)
Pebblebrook buying Margaritaville Hollywood Beach for $270M
Pebblebrook buying Margaritaville Hollywood Beach for $270M
arrow_forward_ios

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

Loading...