UPDATED, Jan.27, 10:50 a.m.: Peachtree Hotel Group sold the Element Miami International Airport Hotel to a Toronto-based real estate investment firm for $20 million.
An entity managed by Ashok Taneja, chairman of Palm Holdings, bought the 209-key hotel at 3525 Northwest 25th Street, according to records. Atlanta-based Peachtree sold the property for $2 million below its purchase price of $22 million in 2017.
Palm Holdings paid $95,693 per key, roughly $10,000 less for each room than Peachtree paid five years ago. Palm Holdings paid an additional $12 million for the hotel operations.
Developer Norwich Partners completed the five-story hotel on the 5.38-acre site in 2012. Norwich paid $3.6 million for the site in 2008, records show. The rooms feature kitchens and workspaces, and the property includes a fitness center, pool, business center and outdoor courtyard. The hotel is about two miles away from Miami International Airport.
Palm Holdings focuses on hotel development, acquisitions and management, according to the company’s website. The company owns 24 hotels in Canada, the United Kingdom and the U.S. All five of its U.S. properties are in Florida. In addition to the Element in Miami, Palm Holdings owns four hotels in Naples and Orlando.
While Peachtree is cashing out of the Element Miami International Airport, the firm this month picked up another Miami-Dade County hotel developed by Norwich. Peachtree paid $49.5 million for a nine-story, 233-key AC Hotel next to Aventura ParkSquare, a boutique condominium and townhome project.
December also saw a handful of significant hotel trades in South Florida. Rockpoint Group paid $37.9 million for the Waterstone Resort & Marina Boca Raton, a 139-key hotel. Starwood Capital Group, led by Barry Sternlicht, bought The Standard hotel in Miami Beach for $62 million. The property has 100 rooms.
And entities with ties to Menomonee Falls, Wisconsin-based Continental Properties bought The 175-room Residence Inn by Marriott Miami Beach Surfside for $69.9 million.