MIAMI—As part of its earnings announcement, Chesapeake Lodging Trust announced it is acquiring the 393-room James Royal Palm in Miami Beach for $278 million. The trust expects to close in the first quarter.
“We are very excited to announce our entrance into the highly desirable Miami South Beach market with the pending acquisition of The James Royal Palm,” says James L. Francis, Chesapeake's CEO. “The Royal Palm, which recently underwent a comprehensive renovation, has an irreplaceable oceanfront location at the intersection of Collins Avenue and 15th Street.”
Peebles originally built the Miami Beach hotel, sold it, and reportedly recently bid to buy it back. The deal marks the highest sale price for a hotel since 2012, when The Perry South Beach—formerly known as the Gansevoort and rebranded as 1 Hotel & Homes—which sold for $230 million in 2012.
“We believe the hotel has significant upside potential in both revenue and profitability and we are happy to partner with both HEI Hotels & Resorts, as the new hotel manager, and Starwood Hotels & Resorts, as the franchisor, on this project,” says Francis. The last hotel Chesapeake acquired was the 337-room JW Marriott San Francisco Union Square located in San Francisco, California for $154.1 million last October.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
