MIAMI—The Hilton Cabana Miami Beach has a new owner. RLJ Lodging Trust just closed on the $71.6 million hotel acquisition. The sale price equals about $310,000 per key and a forward capitalization rate of about 8.5% on the hotel's projected 2015 net operating income.
“We are very excited to close on this new oceanfront hotel in the heart of Miami Beach at a significant discount to replacement cost,” says Thomas J. Baltimore, Jr., president and CEO of RLJ. “This acquisition is another example of our ability to source and underwrite attractive opportunities. We are excited to add this hotel to our portfolio and expect it will further enhance our diversification and growth profile.”
The 231-room hotel is located along the 6200 block of Collins Avenue in Miami Beach. That puts it in the famed "Millionaire's Row" submarket, minutes from South Beach and Bal Harbour. The hotel offers ocean views and a semi-private beach.
Hilton affiliated hotels represent about 1% of the total rooms in the Miami Beach market, according to Smith Travel Research (STR). RLJ expects the property's association with a premium brand will drive strong demand from Hilton loyalists looking for a hotel in the area.
Miami in 2013 posted one of the highest average daily rates and one of the highest revenue per available room among the top 25 markets as defined by STR. Only New York, Oahu Island, and San Francisco topped Miami.
Counting the Hilton Cabana Miami Beach, RLJ now owns 148 properties in 21 states and the District of Columbia. That includes 146 hotels with about 23,000 rooms and two planned hotel conversions.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
