MIAMI-Viceroy Miami, a 148-room luxury, full-service hotel in Downtown Miami, has traded for $36.5 million. Located along Brickell Avenue and constructed in 2009, the hotel calls the ICON Brickell complex home.
Pebblebrook Hotel Trust acquired the asset, which is located in one of the three ICON Brickell towers overlooking the Miami skyline, Miami River and Biscayne Bay. The ICON Brickell is a 10-acre urban development that also includes condominium residences. Viceroy Hotel Group will continue to manage the property.
“Miami has historically performed very well in recovery cycles and the distinctive quality and location of the Viceroy Miami creates a very strong investment opportunity for our company,” says Jon Bortz, chairman and CEO of Pebblebrook Hotel Trust. “The hotel benefits from its location within the ICON Brickell complex along Brickell Avenue, a high-end business district in Miami."
Like many investors, Bortz sees Downtown Miami as a cosmopolitan area that has redefined itself in recent years as the city’s work-play epicenter. Indeed, the Miami metropolitan market has experienced unprecedented growth over the past 20 years, benefitting from a healthy international tourism industry and a strong connection to South America’s rapidly expanding business centers.
“Pebblebrook Hotel Trust’s entrance into Downtown Miami through the purchase of the Viceroy Hotel is yet another sign that this market is strong, viable, and ripe for continued investment,” Leo Zabezhinsky, manager of Business Development and Real Estate for the Miami Downtown Development Authority, tells GlobeSt.com. “With nearly a dozen new luxury hotels adding 2,000 rooms to the area over the past decade, Downtown Miami has emerged as an international destination for business and tourism on par with major global cities around the world.”
In 2010, during the early stage of ramp up from its prior year opening, the Viceroy Miami operated at 68% occupancy, with an ADR of $183. During the next 12 months, Pebblebrook forecasts that the hotel will generate earnings before interest, taxes, depreciation and amortization of $2.4 million to $2.7 million and net operating income after capital reserves of $1.7 to $2 million.
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