Host Hotels Buys Miami Beach Hotel For Over $600M

The 1 Hotel South Beach at 2341 Collins Ave. in Miami Beach
Courtesy: 1 Hotel South Beach
The 1 Hotel South Beach At 2341 Collins Ave. In Miami Beach

A Miami Beach hotel has just traded hands for more than $1M per room.

Bethesda, Maryland-based Host Hotels & Resorts acquired the 1 Hotel South Beach for $610M from a JV of Starwood Capital Group and LeFrak. The deal, brokered by Hodges Ward Elliot, pencils out to $1.42M per room.

The 429-room hotel at 2341 Collins Ave. was the first of Starwood's 1 Hotels brand, which now features properties in Manhattan and Brooklyn and another opening this year in Los Angeles, with plans for international expansion. The Miami Beach hotel will retain the brand following the sale, and Starwood affiliate SH Hotels & Resorts will continue to manage the property.

Starwood and LeFrak acquired the oceanside property in February 2012. The team then spent three years renovating the hotel, improving the pool decks, rooftop bar and other common areas and building a 14K SF gym and a 5,500 SF spa. The developers also built 155 condos next to the hotel.

"We're excited to partner with Host Hotels to continue to expand the 1 Hotels brand," Starwood CEO Barry Sternlicht said in a release. "Host is the gold standard of quality institutional ownership. We wanted a partner who would continue to invest in the hotel's future, our new amenities in planning, and in our green mission. It is rewarding to launch the first mission driven hospitality brand and have it be recognized by discerning luxury travelers and by the investment community."

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