TPG Real Estate Partners bought two hotels in Miami’s Edgewater neighborhood for $61 million.
Investor TPG, through an affiliate, bought the AC Hotel Miami Midtown at 3400 Biscayne Boulevard and the next-door Hampton Inn & Suites at 3450 Biscayne Boulevard, records show. TPG bought the properties through its national hotel platform Odyssey Hotel Partners.
TPG, based in San Francisco and Fort Worth, Texas, paid $32.3 million for the 153-key AC Marriott and $28.7 million for the 151-key Hampton Inn. The price breaks down to $211,274 per room and $190,007 per room, respectively.
Miami-based Aztec Group; Chattanooga, Tennessee-based 3H Group; and family owned firm Arti Hersi sold the hotels, through affiliates, according to Aztec Managing Director Boaz Ashbel.
Paul Weimer and Ron Danko from CBRE brokered the deal.
The sale price is for the real estate, and the true deal value — including furniture and a retail business at one of the hotels — is higher, according to Ashbel, who is also a manager of the selling entities. He declined to disclose the full deal value.
Aztec and 3H built the hotels on 1.2 acres, finishing the AC Marriott last year, and the Hampton Inn in 2017. Arti Hersi was a partner in the selling entities, but was not involved in the development, according to Ashbel.
Deeds show the developers bought the lots, which were previously home to a motel, in 2014 and 2018 for a total of $5.75 million.
The properties were put on the market this year, after a previous contract fell through at the start of the pandemic, Ashbel said.
TPG, founded in 1992 and now led by Jon Winkelried, has more than $91 billion in assets under management, according to its website. David Bonderman, James Coulter and William Price III founded the group, which also invests in technology, healthcare, and natural resources and energy.
Jacob Muller, managing director at TPG Real Estate Partners, said in an emailed statement that the firm is focused on the greater Miami area. “The acquisitions complement TREP’s national hotel strategy, which focuses on acquiring and owning high-quality hotel properties in growing markets,” he said.
Domestic travel has rebounded, but the South Florida hotel market, largely dependent on conventions and cruises, still needs business and international travelers to return before boasting a full recovery, experts have said.
Still, some developers are planning to add more keys to the market. In Miami Beach, the Chetrit Group scored a $62.5 million construction loan for a Collins Park hotel project in May, and Bulgari wants to open its first U.S. property in Miami Beach, by redeveloping the Seagull Hotel.