Sunstone Collins, LLC, part of the lodging real estate investment trust (REIT) Sunstone Hotel Investors (NYSE: SHO) was the highest bidder Monday for the Royal Palm Resort hotel in Miami Beach. The winning bid of $126.1 million was made during an online foreclosure auction.
The 409-room resort is located in South Beach, known for its boutiques, beach life and international tourism. The Royal Palm is near the Miami Beach Convention Center, with access to retail centers and the area’s famed beaches.
The hotel is open during the transition to new ownership, a representative at the Royal Palm said Tuesday.
The auction was held through the Miami-Dade clerk of courts. A court-appointed receiver retained Jones Lang LaSalle Hotels as agent for the distress sale.
“Hotels of this caliber are usually held by owners for long periods, and are seldom seen on the market,“ says Gregory Rumpel, executive vice president for Jones Lang LaSalle Hotels.
“This pending acquisition by Sunstone represents a rare opportunity on this high profile, oceanfront, Collins Avenue icon,” says Rumpel.
The hotel, located at 1545 Collins Ave. in Miami Beach, is expected to undergo renovation and to gain a new manager.
In addition to its 409 luxury rooms, the hotel offers 133 suites, including a presidential beach suite, with a 2,000 sq. ft. terrace capable of holding more than 60 guests.