South Florida hotels traded for record numbers in 2019, as the industry continued to grapple with competition from short-term rentals and an oversupply of rooms.
“The hotel market in 2019 is really a continuation of a lot of the trends in 2018. There was softness in occupancy in markets with new supply, and in markets where there was not a lot of supply, you saw considerable growth,” said broker Max Comess of Hodges Ward Elliott.
From a transactional perspective, Comess said that 2019 was the year of the family office. Long-term holders such as family offices and real estate investment trusts were the purchasers in some of the biggest deals in the tri-county region, including the top $875 million sale.
Comess and others expect that the Super Bowl will push Miami to jump out ahead of other top hotel markets in 2020.
Billionaire Michael Dell buys Boca Raton Resort & Spa for $875M
Michael Dell’s MSD Partners paid $875 million for the 1,047-room Boca Raton Resort & Spa. That price tag breaks down to $589.7 million for the resort, including furniture, fixtures and equipment, and $285.3 million for the Premier Club. The Blackstone Group sold the property to the Dell computers billionaire.
Host Hotels drops $610M on 1 Hotel South Beach
Host Hotels, one of the largest lodging real estate investment trusts, paid $610 million for 1 Hotel South Beach, creating 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 in Miami Beach.
Tommy Hilfiger sells Raleigh Hotel to Michael Shvo and partners for $103M
In the first of three deals, Shvo, Bilgili Group and Deutsche Finance Group paid $103 million for the Raleigh Hotel, at 1775 Collins Avenue in Miami Beach. Tommy Hilfiger and Dogus Group sold the 83-room hotel for $1.24 million a key. Combined with later deals, the Michael Shvo-led group is planning a new 200-foot tower on the site, as well as renovations of the existing properties.
Shvo and partners pay $87.85M for the Richmond Hotel
Patti and Allan Herbert, who represent the third generation of the family that has owned the hotel since its inception, sold The Richmond, at 1757 Collins Avenue, to Shvo for $87.85 million. The hotel has 92 rooms in a four-story, nearly 52,000-square-foot building.
Wurzak buys Renaissance hotel near Port Everglades for $62M
Wurzak Hotel Group bought the Renaissance Fort Lauderdale Cruise Port Hotel for $62.2 million. The Philadelphia-based hotel group bought the 236-room hotel near Port Everglades at 1617 Southeast 17th Street in Fort Lauderdale for about $262,000 per room. Atlanta-based Noble Investment Group sold the property.
Shvo group buys third hotel, South Seas, for $52M
Synergetic Real Estate of Florida LLC, led by Thomas Glassie, Paul Doucette and John Taft, sold The South Seas at 1751 Collins Avenue in Miami Beach to Shvo and his partners for $52 million. The 118-key, four-story, 50,386-square-foot building was built in 1941 on a 32,500-square-foot lot.
London + Regional Properties pays $48.65M for Pullman Miami Airport hotel
Los Angeles-based Laurus Corp. sold the Pullman Miami Airport hotel to London + Regional Properties for $48.65 million. London + Regional Properties purchased the 281-room hotel at 5800 Blue Lagoon Drive without ties to a management agreement but plans to keep the Pullman brand for a year.
London + Regional Properties buys Fort Lauderdale Marriott hotel for $48.5M
Procaccianti Companies sold Fort Lauderdale Marriott North in north Fort Lauderdale to London + Regional Properties for $48.5 million, or about $154,000 per room. The 315-key hotel at 6650 North Andrews Avenue last sold for $35 million in 2006.
Brookfield buys Mayfair hotel in Coconut Grove for $46.75M
Brookfield Asset Management bought the Mayfair Hotel & Spa in Coconut Grove for $46.75 million. Copperline Partners and TriGate Capital sold the hotel at 3000 Florida Avenue in Miami to Brookfield. The 179-room hotel was designed by Miami architect Ken Treister and was completed in 1985.
Hank Freid buys Marriott-branded Pompano Beach hotel for $44M
A company tied to New York hotel developer Hank Freid paid $44 million for the Residence Inn by Marriott Fort Lauderdale Pompano Beach. Claremont Companies sold the 106-room at 1350 North Ocean Boulevard in Pompano Beach for $415,000 per room.
SOURCE: TRD analysis of brokerage data, as provided by Colliers International, news clippings and market reports.