Sotherly Hotels closed on its acquisition of the hotel commercial space at Hyde Beach House Resort & Residences in Hollywood.
The Related Group’s 4000 South Ocean Property Owner LLC sold the commercial unit to an affiliate of Sotherly for $5.35 million, property records show. The deal was announced in September and closed on Dec. 26.
The sale includes the lobby, front desk, offices and other spaces, according to a press release. The deal did not include any hotel units, a spokesperson said. Hyde Beach House, a 342-unit condo-hotel at 4010 South Ocean Drive, was completed three years ago.
Williamsburg, Virginia-based Sotherly signed a 20-year management agreement for the parking garage and poolside cabanas at Hyde, and an agreement to operate and manage the condo association. The property also has a pool deck, sports and aqua club fronting the Intracoastal Waterway.
Sotherly Hotels was removed as the hotel manager of the similarly named Hyde Resort & Residences nearby in Hollywood, another Related Group-developed condo-hotel project. In a federal lawsuit filed on May 30, 2019, Sotherly accused the association’s president of using “commercial speech to defame and set forth falsehoods” about its management of the Hyde resort, as well as its executives and employees.
The association also sued Sotherly in Broward County Circuit Court, alleging the company and its affiliates engaged in a “pattern and practice of improperly utilizing [The Hyde association’s] funds to cover the overhead and expenses of unrelated hotel operations.”