Matthews Hospitality Group principal Robert Matthews tells GlobeSt.com that approval for the project was granted last week and demolition work will begin in June. When the project is completed in January, it will include 79 furnished studios and suites, two venues for dining and cocktails, meeting space, a spa and salon, fitness center and pool. Units will range in size from 475 sf to 950 sf and prices will range from $1.25 million to more than $3 million based on size and location of units.

Matthews acquired the property, the 95-unit Heart of Palms hotel, in August. The project is located 400 feet from the beach and a short walk to Worth Avenue, where shopping, restaurants and other retail services are located. Unlike Miami which has many condo-hotels projects, Palm Beach has few. Palm Beach is considering a moratorium on condo hotels, which could make the project the last of its kind, Robert Matthews adds.

"There is a lot of pent-up demand for condo hotels in Palm Beach," he says, who has lived in Palm Beach for more than 20 years. Preliminary presales efforts were recently started. "Our goal is to have the project 25% pre-sold by August and I believe we'll make that goal," he says.

Matthews focuses on high barrier-to-entry markets and, in addition to the Palm House, has a condo-hotel project in Nantucket, MA called Point Breeze. He is also planning to acquire projects in Aspen, CO; Stowe, VT; and the Caribbean or Bahamas within the next three years.