A Maryland-based hotel real estate investment trust is buying South Beach's 393-room James Royal Palm for $278 million.
Annapolis-based Chesapeake Lodging Trust, which has a portfolio of 20 high-end hotels across the United States, said Thursday it has a definitive agreement to acquire the property. The price works out to $707,379 per room.
"We are very excited to announce our entrance into the highly desirable Miami South Beach market," said James L. Francis, Chesapeake's President and CEO. "The Royal Palm, which recently underwent a comprehensive renovation, has an irreplaceable oceanfront location at the intersection of Collins Avenue and 15th Street."
Francis said Starwood Hotels and Resorts would be the new franchisor for the property but did not specify which brand's flag the hotel would fly. In South Florida, Starwood licenses the Sheraton, Westin, W Hotels, St. Regis, Aloft and Element brands. HEI Hotels & Resorts will manage the hotel, the executive noted.
The 17-floor Royal Palm at 1535 Collins Ave. is being sold by RP Hotel Holdings LLC, which is linked to Denver-based private equity fund KSL Capital Partners. RP bought the property in August 2010 for $126 million and took out $130 million worth of debt against the asset.
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