MIAMI-The Continental South Beach Hotel in Miami Beach has sold for $61 million. Jones Lang LaSalle Hotels represented the seller, RFR Holding. InSite Group beat out several other investors for the coveted site.
The Continental South Beach boasts a premier ocean front address in SoBe 10 (the new moniker for 15th through 24th Street, also known as the “golden mile” of South Beach). Located at the corner of 18th and Collins, the eight-story hotel has 251 rooms.
“The SoBe 10 is taking on a life of its own right now,” says Gregory Rumpel, an executive vice president for Jones Lang LaSalle Hotels. “This is where the action is—and the Continental South Beach Hotel is right in the middle of it. People are waking up to the fact that this 10-block strip is a very good long-term investment.”
As Rumpel sees it, the acquisition of the Continental South Beach provides InSite Group the opportunity to enter the tightly held corridor, with a rare opportunity to reposition a large hotel in a high barrier-to-entry market. The Continental South Beach Hotel is with walking distance to Lincoln Road, as well as the New World Symphony.
InSite plans to embark on a redevelopment within the confines of the existing box. The brand strategy has not been announced, but Rumpel says the group has several options.
JLL Hotels expects the Miami hospitality market to have robust growth in 2011 with 11% to 12% RevPAR growth as it continues attracting a unique mix of Latin American, European and domestic visitors. Rumpel expects more activity along the Sobe 10 this year, and predicts $750 million to $1 billion worth of hotel real estate to trade in South Florida in 2011.
“A number of hotels along the strip are sitting with special servicers,” Rumpel tells GlobeSt.com. “There is a very deep market of investors waiting for those properties to come out to the market or be available in some way to be recapitalized or invested in. There are also a number of unhappy investors who lost out on the Continental South Beach Hotel that are still looking for deals on the beach.”
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