A company tied to Heyat Hospitality Group sold the Redbury South Beach Hotel on Collins Avenue for $32 million to Blue Road, which plans to expand the property.
Blue Road, led by principals Jorge Savloff and Marcelo Tenenbaum, will also manage the 69-room hotel, replacing Sbe, a spokesperson said. The Art Deco property at 1776 Collins Avenue sold for about $464,000 per key. No brokers were involved, but Alejandro Viel Temperley worked on the deal, the spokesperson said.
Sbe, Levy Restaurants and Heyat re-opened the popular hotel in 2013 with a 12,000-square-foot rooftop pool and a Cleo restaurant. The three-story building was built in 1952 and is on the west side of Collins Avenue, across from the Raleigh Hotel and SLS South Beach.
Heyat’s Sobe Hotel Miami Beach LLLP paid $14 million for the property in 2014, which means it just sold for more than two times the previous sale in three years.
Blue Road plans to demolish its Hotel 18 next door to the Redbury within eight months and build an extension to the Redbury, according to a press release. Kobi Karp is designing the 69-room addition at 1775 James Avenue, which will bring the Redbury to 138 rooms. The Redbury and Cleo will remain open throughout.
The property is near the Shore Club, which HFZ Capital Group plans to redevelop into the Fasano Residences + Hotel Miami Beach, a luxury condo and hotel project. HFZ paid about $567,000 per key for the beachfront Shore Club in 2014.
Experts say Miami-Dade’s hotel market is nearing the end of the cycle. “There has been a little tightening in the capital markets in terms of liquidity for new hotel development,” Rich Lillis, a South Florida executive vice president for Colliers International, said in The Real Deal’s June issue.
Lenders have been pulling back on financing new hotel projects and focusing on those with “compelling market dynamics, brands and locations,” Lillis said.
Blue Road also owns the Crest Hotel, which it acquired last year for $24 million, and re-opened CASA Boutique Hotel earlier this year, according to a release.
Sbe and Heyat could not immediately be reached for comment.