Abu Dhabi sovereign wealth fund scores $180M refi of Miami Beach Edition hotel

The Abu Dhabi Investment Authority closed on a $180 million refinancing of the Miami Beach Edition, an oceanfront hotel it acquired six years ago for $230 million.

First Abu Dhabi Bank and the National Bank of Kuwait provided the financing, according to sources familiar with the deal. The Abu Dhabi sovereign wealth fund paid $230 million for the 294-key hotel at 2901 Collins Avenue in 2015. The deal equated to more than $782,000 per room.

A team led by JLL’s Kevin Davis and Barnett Wu represented the borrower in the refinancing, according to a press release.

Marriott International sold the Miami Beach Edition in 2015, months after it was completed, as part of an $815 million sale of three Edition hotels to ADIA. Marriott and Ian Schrager redeveloped the 3.5-acre property, which includes 28 bungalows, a rooftop penthouse, two outdoor pools, a fitness center and spa. Marriott still manages and operates the hotel.

The Edition is also home to Basement, an underground nightclub with a bowling alley and ice skating rink, as well as Matador Room/Bar, Market at Edition, and Tropicale and Lobby Bar, according to a release from JLL. It’s part of a mixed-use building with luxury condos. Condo buyers included businesswoman and Bollywood actress and producer Poonam Khubani. 

The leisure hotel market in South Florida recovered from the pandemic much faster than the rest of the country, especially luxury hotels such as the Edition. During the upcoming Art Basel art fair, daily rates at the Edition start at more than $1,700 and go up to nearly $6,000, according to the website.

More redevelopment is coming to the ocean-facing side of Collins Avenue. Witkoff and Monroe Capital acquired the Shore Club hotel at 1901 Collins Avenue from HFZ Capital Group and are proposing to tear down a 20-story tower as part of a large-scale renovation of the hotel, which has been shuttered throughout the pandemic.

A few blocks south, Shvo, led by developer Michael Shvo, plans to renovate and add to the landmark Raleigh Hotel and adjacent properties with a new tower. Two years ago,
Shvo, Bilgili Holdings, and Deutsche Finance America invested a combined $219.6 million to buy the 80-year-old Raleigh Hotel at 1775 Collins Avenue and the neighboring 79-year-old South Seas and Richmond hotels.