British billionaires Simon and David Reuben are betting big on Miami Beach’s hospitality market, seeking majority ownership of the W South Beach for close to a half-billion dollars.
Reuben Brothers, their eponymous London-based global investment arm, is negotiating a deal with the 395-room hotel’s current owners, Aby Rosen and David Edelstein, who lead New York-based firms RFR Realty and TriCap, respectively.
The buyers and the sellers are “in advanced discussions” to recapitalize the hotel portion of the property at 2201 Collins Avenue for more than $400 million, a source familiar with the pending purchase told The Real Deal. The 20-story building also has 211 condo-hotel units owned by individuals.
Newmark’s Doug Harmon is advising on the deal, which hasn’t yet closed, the source said. A spokesperson for the brokerage and an RFR spokesperson declined comment. Tricap’s Edelstein did not respond to a voicemail seeking comment. A Reuben Brothers spokesperson said the firm would not be able to comment by deadline.
The deal, first reported by The Promote, signals Reuben Brothers’ entry into Miami-Dade County’s booming hotel market. Hotel occupancy rose 3.7 percent to 75.7 percent from January through August of this year, compared to the same period of last year, according to a report by the Greater Miami Convention & Visitors Bureau. The average revenue per room increased 2.6 percent to $171.69 in the first eight months of 2024, compared to the same period of last year.
W South Beach would be Reuben Brothers’ second hotel property in South Florida. Two years ago, Reuben Brothers paid $42 million for Chesterfield Hotel, a 53-room boutique property in Palm Beach.
In May, an entity tied to an Allen Park, Michigan-based company that the Reubens own paid $14 million for a waterfront spec home on Miami Beach’s North Bay Road.
Earlier this year, Rosen and Edelstein engaged in a legal dogfight over a scuttled $200 million buyout and a looming deadline for a maturing $157.4 million loan. In January, the two New York real estate titans filed dueling lawsuits in their home city and in Miami-Dade Circuit Court. Four months later, the partners reached a resolution and dropped the litigation. They did not disclose the terms of their settlement. Tricap (former Tristar Capital) co-developed the W South Beach in 2009.