Connecticut Firm Buys Delano South Beach Hotel

The shuttered Delano South Beach is a far cry from its wild party nights—Madonna celebrated her 37th birthday there in 1995—and lazy days by the pool, one of the few bikini top-optional spots on Miami Beach.

The Art Deco building has remained quiet for eight months after closing because of the coronavirus pandemic, but a Connecticut investment manager saw future value judging by its recent purchase.

Eldridge, a Greenwich-based holding company with a diversified portfolio, bought the Delano from SBE Entertainment Group LLC, a major hotel owner based in New York.

Eldridge bought the Delano along with the Hudson Hotel in New York, according to a news release. The purchase price is unknown since no deed was recorded.

Eldridge offers debt and equity as well as support for growing businesses in the real estate, technology, insurance, sports and media realms. Its real estate investment arm, Cain International, will lead a significant refurbishment of both hotels.

The Delano will stay closed and the Hudson will close next month in the lead-up to their repositioning, according to the release.

The beachfront Delano was developed in 1947 and at 14 floors was once the tallest Miami Beach building. The 191-key hotel sits on 1.3 acres at 1685 Collins Ave.

Its name is an homage to President Franklin Delano Roosevelt, who died two years before the hotel’s completion.

SBE purchased the Delano and Hudson hotels in December 2016 when it acquired Morgans Hotel Group Co. and its properties in a deal valued at more than $800 million.

The Hudson is an 878-key hotel in Midtown Manhattan at 356 W. 58th St. It was developed in 1929 by Anne Morgan, daughter of financier and banker J.P. Morgan, as a clubhouse for the American Woman’s Association.

After the association went bankrupt, it was converted to a hotel, and Morgans acquired it in 1997. It hasn’t undergone a major renovation in two decades, according to Eldridge.