Dealmaker: Host Hotels & Resorts Pays $610M for South Beach Hotel
Michael Tucker email@example.com
Host Hotels & Resorts, Bethesda, Md., acquired the 429-room 1 Hotel South Beach in Miami Beach, Fla. on Feb. 14 for $610 million, or $1.42 million per key.
Starwood Capital Group, Greenwich, Conn. and LeFrak, New York, acquired the former Gansevoort Miami Beach hotel in 2012. The venture re-opened the property re-opened in 2015 following a $300 million repositioning renovation.
The 1.1 million square foot resort at 2341 Collins Ave. occupies the block between 23rd and 24th streets in Miami Beach. It has more than 600 feet of ocean frontage with direct beach access, 160,000 square feet of flexible meeting space and 23,000 square feet of retail space.
"The hotel has no near-term capex needs and carries a revenue per available room of over $488, making it one of the top three in our portfolio," said Host Hotels President and CEO James Risoleo.
With this acquisition, Host Hotels & Resorts, the largest U.S. lodging real estate investment trust, owns 88 properties in the United States and five properties internationally totaling 52,000 rooms.
Starwood Capital Group launched the 1 Hotels brand in 2015 as a "mission-driven" brand that emphasizes sustainability. The property includes an 11,000-square-foot "living wall" near the main entrance. Starwood went on to open 1 Hotels near Manhattan's Central Park and in Brooklyn, N.Y. and plans to open a Los Angeles 1 Hotel in the second quarter.
Starwood Capital Group affiliate SH Hotels & Resorts will continue to manage the property as 1 Hotel South Beach.