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CL Hotels pays $26M for Circa 39 in Miami Beach
JV between Black Salmon and AMS Hospitality sold 97-room property
CL Hotels picked up an Art Deco hotel in Miami Beach for $25.55 million.
An affiliate of North Miami Beach-based CL acquired Circa 39 Hotel, a three-story building with 97 rooms at 3900 and 3924 Collins Avenue, records and Vizzda show. The deal breaks down to $263,400 per room.
The seller, a joint venture between Coral Gables-based Black Salmon and Ashburn, Virginia-based AMS Hospitality Group, paid $25.5 million for the property in 2021, records show. AMS Hospitality is a joint venture between Coral Gables-based Allen Morris Company and Atlanta, Georgia-based Stormont Hospitality Group.
A Black Salmon spokesperson said the joint venture sold the hotel at almost the same price it paid three years ago due to “changes in the capital markets environment, construction costs, and the stress within the lending market.”
“Corporately, Black Salmon’s focus is on the housing and industrial markets, where we are working on several strategies,” the spokesperson said. “During the pandemic, Black Salmon launched an opportunistic hospitality strategy” that the company is no longer pursuing.
Originally built in 1939, Circa 39 Hotel was designed by Albert Annis, who was among a group of architects known for working in Art Deco style. Annis also designed the Clevelander Hotel and the Leslie Hotel on Ocean Drive. In 1968, Circa 39 Hotel’s then-owner added another 25,772 square feet to the then-10,000-square-foot building, records show.
Founded in 2021, CL Hotels is led by managing partners Joao Woiler and Bruno Piacentini. Prior to forming CL Hotels, Woiler and Piacentini acquired, renovated and managed a portfolio of hotels in the U.S. with more than 3,300 rooms and an asset value of $680 million, according to the firm’s website.
CL Hotels plans a multimillion-dollar renovation of Circa 39 and entered into a franchise agreement with Atlanta-based IHG Hotels and Resorts to rebrand the property under IHG’s Vignette Collection, a press release states. Arlington, Texas-based Aimbridge Hospitality will manage Circa 39, the release states.
Miami-Dade’s hotel market is the hottest in the country. The county ended February as the best performing market with an 88.2 percent occupancy rate among 25 top hotel markets in the U.S., according to CoStar.