KSL Capital Announces Acquisition of Royal Palm Hotel in South Beach
April 13, 2011 - KSL Capital Partners, LLC announced today that it has acquired The Royal Palm Hotel in Miami's historic South Beach district for $130 million at closing, or roughly $318,000 per key, from an affiliate of Sunstone Hotel Investors, Inc. (NYSE: SHO).
Opened in 1939, in 2002 the hotel underwent an extensive renovation that added two towers and increased the size of the hotel to 409 rooms. KSL intends to completely renovate and reposition the hotel under The James brand as The James Royal Palm.
The hotel is managed by Denihan Hospitality Group who will remain in place following the acquisition and who will manage the planned renovation.
“South Beach is one of the strongest and most desirable hotel locations in the United States. The very successful James brand is a natural addition to South Beach. Following the renovation, The James Royal Palm will be the premier luxury boutique hotel in South Beach,” said Bernard Siegel, a Principal of KSL.
The renovation plan includes improvements to all of the guestrooms, guest baths and public areas of the hotel, including new restaurants, a spa, outdoor spaces, and furnishings to bring the hotel up to the exacting standards of The James brand. The renovation is scheduled to be completed in late 2012.
Mr. Siegel added, “South Beach is not simply a vacation spot, but a historic and vibrant community. The Royal Palm was originally constructed at the height of the art deco movement in Miami. The planned renovation will preserve the style and history of the hotel, while improving virtually all aspects of the Royal Palm with a new level of luxury and sophistication. We are very pleased to be part of this exciting project and a part of South Beach.”
The Royal Palm is located on nearly two acres in a prime beachfront location between 15th and 16th Streets on Collins Avenue in Miami Beach.
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