The Royal Palm South Beach hotel will reportedly become Starwood’s first Tribute hotel.
Starwood Hotels & Resorts Worldwide will spend $20 million to launch the portfolio, the Wall Street Journal reported. The company is aiming to have 100 independent properties join Tribute by 2020.
The hotels “will get a powerful distribution network but get to remain independent,” Adam Aron, Starwood’s interim chief executive, told the newspaper.
Chesapeake Lodging Trust, a real estate investment trust focused on high-end hotels, announced the acquisition of the former James Royal Palm for $278 million in February.
The $278 million acquisition means that the 393-room oceanfront hotel at 1545 Collins Avenue sold for more than $707,000 per room.
Don Peebles, who made an “aggressive” offer when the James was being marketed for sale, redeveloped the Miami Beach hotel and later sold it in 2005. [Wall Street Journal] — Katherine Kallergis