Hotel Equity Fund – South Beach & Miami FL Hotel Investments

South Beach Miami – Hotel Market Report 2020

As a neighborhood in the city of Miami Beach, Florida, it should not be a surprise that South Beach has a bustling economy and extremely active tourism sector. This destination has everything – beautiful beaches, top-rated shopping, impressive Art Deco district, as well as fine dining and a vibrant nightlife.

This unforgettable area has natural beauty (sand – waves – and beach fun), as well as urban treasures, such as its Art Deco District. South Beach is a dream destination and hub of hotel real estate. With 900 historic properties, this area has the largest concentration of Art Deco architecture in the US.

The region’s prosperous economy – and super weather – attract business and leisure travelers to this authentic Miami neighborhood. Developers also prefer such a mild climate; it means fewer weather-related delays.

South Beach is recognized as an accessible urban walking center that supports the area’s fabulous shopping (such as Collins Avenue Shopping Area and the Lincoln Road Mall) and retail sector. South Beach is a trendy spot, its hospitality industry is in high demand.

South Beach has something for everyone. Pristine beaches (such as Lummus Park Beach, etc.) offer opportunities for sunbathing, water fun, area activities – and a stroll down Ocean Drive; check out the Miami Beach Boardwalk and Miami Beach Arena.

South Beach includes a vibrant entertainment district – complete with an exciting nightlife and gourmet dining. The Filmore Miami Beach at Jackie Gleason Theater, as well as the Art Deco Welcome Center and Miami City Ballet, New World Center, and Wolfsonian Museum attract cultural lovers.

The Art Deco Welcome Center houses the Art Deco Museum that helps visitors understand the architecture, heritage, and community of Miami Beach. Three main designs characterize Miami Beach – Mediterranean Revival, Art Deco, and Miami Modern (MiMo).

The Wolfsonian showcases a century (1850-1950) of American and European decorative and fine arts.

This area is also home to historic landmarks such as the inspiring Holocaust Memorial and Ancient Spanish Monastery.

The romantic Española Way, a two-block pedestrian-only corridor between Washington and Pennsylvania Avenues, adds to the vintage charm of South Beach. Created by N.B.T. Roney in 1925, this palm-lined street is an impressive throwback – a Spanish village – designed to mirror Mediterranean havens in Spain and France. Española Way is a cultural gem.

If tourists are looking for games or events, they will enjoy the action at American Airlines Arena, Marlins Park, or the 36.53-acre Flamingo Park. Nature lovers will be inspired by the Miami Beach Botanical Garden.

Situated in the heart of South Beach, the recently renovated Miami Beach Convention Centre is a destination by itself. This innovative state-of-the-art building is a central hub. With its almost 500,000 square feet of flexible exhibit space, as well as a spectacular 60,000 Grand Ballroom, this beautiful facility impresses business and leisure visitors.

South Beach hotels can fetch impressive prices. For example, the first days of January 2020 saw a 172-room South Beach hotel sell for $120 million – about $698,000 per key – and almost four times the price paid in 2018. The new owners plan to transition this property into a luxury hotel.

As of October 2019, two other South Beach hotels were listed for a combined $42 million.

During 2019, three neighboring hotels on Collins Avenue in South Beach sold with plans for a 200-foot-tall residential project.

Two South Beach boutique hotels were on the market near mid-January 2020 for a combined $23.5 million or $490,000 per room. This sale also allows the option of buying the hotels as separate properties. The new owners will have the necessary space and zoning for expansion possibilities.

With its glamorous atmosphere and cool vibe, South Beach is one of the globe’s most fashionable neighborhoods; it has a unique style and aesthetic.

The Collins Avenue and Ocean Drive Shopping District have been a fashion mecca for decades. Ocean Drive is known as the “Capital of Cool.”

With a clothing boutique around every corner, as well as more than 30 designer brands, youthful fashions, and one-of-a-kind accessories, this famous street sets the fashion trends for Miami and beyond. Combined with its nightlife, restaurants, and galleries, Ocean Drive imparts an aura of energy.

South Beach is an iconic spot – a must-visit for travelers – and a favorite with celebrities. So-Be hotels provide the ultimate oasis in a paradise setting.

Visitors flock to see and feel the “essential experience” which can only be found at South Beach – one of the world’s most popular destinations. There is no other place quite like South Beach, Miami.

 

HOTEL EQUITY FUND INVESTMENT PARTNERS

 

Acquisitions and Investments

Hotel Equity Fund is one of the top hotel investment in Europe, and now expanding to New York City, West Hollywood CA, South Beach Miami Florida, Chicago, San Francisco, Washington DC, London, Paris, Berlin, Toronto, Jerusalem and Tel Aviv Israel, with results that have consistently bested industry averages. Much of this success is a direct result of our focus on investor returns, individual assets, and aligning management with the individual needs of owners. Our combination of strong capitalization through Hotel Equity Fund, and a strong track record of experience offer a level of credibility that is nearly unmatched in the industry.

 

Investment Criteria

We are aggressively seeking new properties in New York CityWest Hollywood CASouth Beach Miami Florida, ChicagoLos Angeles, San FranciscoWashington DCLondon UKParis,  BerlinToronto ONMontréal Québec, Israel including Tel Aviv and Jerusalem, and feel that our centralized operation of business in New York offers the very type of responsiveness, professionalism and capital resources the industry has been seeking. Please click here to review the investment criteria.

 

Development Opportunities

Our Hotel Equity Fund owned hotel and resort development subsidiary, Hotel Equity Fund Development, has extensive experience in resort, hotel, and golf course development, with recent hotel development and hotel redevelopment projects totaling over $2 billion. Our projects are well known for meeting market demand and for attention to both design and operating detail. Our culture of “listening to the customer” is at the heart of our development process and has allowed properties to excel in both operating performance and value retention.

 

Boutique Hotel Investments

Boutique hotels, also known as lifestyle hotels, vary in shape and size; however, all boutique hotels rely heavily on creative energy and highly personalized service to compete in the overall hotel industry.

Hotel Equity Fund is a respected financial hotel investment firm, utilizing hotel equity funds to assist its hotel real estate developers and partners in gaining favorable returns on their investments. Hotel Equity Fund works with a range of hospitality firms to increase the efficiency and effectiveness of individual hotel properties, ranging from boutique hotels with excellent F&B, premium brands to mid to up-scale well-located properties.

Since 1980, the Hotel Equity Fund and Hotel Equity Fund Partners Investment Program have invested over $2 billion into quality hotel real estate properties with aggregate transaction capitalization of nearly $3 billion. By partnering experienced advisors with each investment partner, Hotel Equity Fund ensures that each property is equipped with a creative vision and practical management plan to achieve long-term financial sustainability and success.

 

Hotel Developments & Acquisitions

Hotel Equity Fund routinely assesses joint venture development opportunities which provide long-term alignment of interests for both Hotel Equity Fund and prospective partners in New York CityWest Hollywood CASouth Beach Miami Florida, Chicago, Los AngelesSan FranciscoWashington DC, Toronto Canada, LondonParis, Jerusalem and Tel Aviv Israel.

Experienced, multi-brand, investment-grade hotel developers, Hotel Equity Fund will take a project from dirt or acquiring an Landmark Building for hotel conversion to a stabilized hotel through hotel disposition. Offering a variety of hotel investment services, our specialized team can meet your unique hotel project requirements including, but not limited to, the following:

 

  • Assist in hotel site selection and property evaluation.

 

  • Evaluate benefits of and selection from available boutique brand or a national brands.

 

 

 

  • Make recommendations regarding legal entity and JV agreement options.Prepare preliminary hotel construction cost estimates.

 

  • Offer professional market study or appraisal recommendations.

 

  • Assist in selection and coordination of attorney, architect, civil engineer, project manager, general contractor,

 

  • FF&E procurement and interior design.

 

  • Provide construction, financing, permanent debt, refinancing and disposition roles.

 

  • Execute long-term management contract services.

Hotel Equity Fund’s proven investment methods mitigate risk and encourage success, combining our investment and management fluency with the strength and potential of partner assets. If you would like to read more about the positive impact we have made with our hotel equity fund, please explore the entirety of this website.