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Casa Hotels adds to South Florida portfolio with boutique Miami Beach hotel

27-key hotel sold for $270K per room

1420 Collins Avenue
1420 Collins Avenue

Casa Hotels Group, a Chilean investment firm, paid $7.3 million for a boutique hotel in South Beach.

The Odyssey of South Beach LLC, led by Ronnie Menashe, sold the 27-key Odyssey Hotel at 1420 Collins Avenue in Miami Beach to Casa Hotels Group, property records show. The Art Deco property traded hands for about $270,000 per key.

The 9,600-square-foot hotel marks the fifth that Casa Hotels Group has purchased over the past year in South Florida, said Valerio Spinaci of Opera Real Estate Investment. Spinaci and his partner Federico Maria Ionta represented the buyer. Marcus & Millichap’s Scott Sandelin, David Cohen and Alejandro D’Alba represented the seller.

The other properties that Casa Hotels Group bought include 334 Ocean Drive, The Mint and the Coral Reef hotels in Hollywood, and Casa Sofi, which is under construction in Miami Beach.

The Odyssey, built in 1930, was on the market for nearly $7.5 million. It last sold for $6.5 million in 2014.

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According to the offering memo, the boutique hotel was 98 percent occupied in 2018 with an average daily rate of about $144 a night, and an average revenue per available room of $141 per night. The net operating income last year totaled more than $516,000.

Eric Gonzalez and Antonio Roca of the law firm Roca Gonzalez PA also worked on the deal.

The buyer plans to rebrand its properties under the Casa Hotels Group name, and offer both hotel rooms and short-term rentals, Spinaci said.

A number of boutique hotels and apartment buildings in South Beach have sold in recent months. In June, investor Adam Hyatt bought the SoBe Hostel at 235 Washington Avenue for $10 million, with plans to upgrade the property to a hotel.

Also last month, Miami developer Amanda De Seta closed on the apartment building at 221 Collins Avenue, which has flexible zoning.

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