Marriott Plans Flagship 'Edition' Inn on Shuttered Seville Beach Hotel Site in Miami Beach
A Marriott International affiliate has picked up a prime Miami Beach hotel development site for $57.5 million -- $10 million under a now-dismissed bankruptcy court lawsuit asking price.
The Bethesda, MD-based company plans to build a curiously-named hotel called Edition on the three-acre oceanfront site of the former 12-story, 278,547-square-foot, 55-year-old Seville Beach Hotel at 2901 Collins Ave., according to a Marriott statement.
The first Edition hotel is expected to open later this year in Hawaii on Waikiki Beach. Other Editions are in the construction or planning stages in Istanbul, Bangkok and Barcelona.
The Edition line is being designed by boutique-hotel pioneer Ian Schrager who re-launched the Delano Hotel on South Beach in 1995. Schrager will be a Marriott partner in the Edition project.
"This brand has tremendous growth potential, and this hotel will be a flagship for the brand," Carl Berquist, Marriott's CFO, told analysts on an online conference call, according to Travel Weekly's report.
Miami-based analyst Mark Lunt, a principal at Ernst & Young's hospitality practice, gave the site mixed reviews, USA Today reports.
"It is a great site, but it is somewhat challenged," Lunt says.
'It's not as close to the heart of South Beach as convention groups and other meeting attendees typically like. Yet it may have an advantage over the grand hotels like the Fontainebleau and Eden Roc that are further up the beach."
Lunt adds, "The hotel sits at 29th Street in a stretch of the beach that is just as beautiful - but not as active as, say, below 22nd Street.
"There's a dead zone of about 10-15 blocks. It's a gorgeous area, and the beaches are just as gorgeous."
Prior to Marriott's June 30 bid, other bidding developers sought to turn the rooms into a Ritz-Carlton condo and time share complex -- a brand Marriott also owns -- but that fell victim to an unfriendly credit market, according to South Florida Business Journal
. No renovation or new construction work was ever done.
The Miami office of Holliday Fenoglio Fowler closed the sale. HFF executive managing director Manny de Zárraga, senior managing directors Dan Carlo and Daniel Peek and director Jaret Turkell represented the 2901 Beach Ventures, LLLP ownership group.
The venture is a partnership between affiliates of Fortune International and Lionstone Group. Both Fortune and Lionstone have been retained by Marriott on a consulting basis for the new project.
"The sale of the Seville is among the most significant hotel sale transactions of 2010 in the southeast United States," says Peek. "This sale highlights the exceptional confidence held by institutional investors in the Miami Beach hospitality investment sector."
Located along Collins Avenue between 29th and 30th Streets in Miami Beach, the hotel and development sites encompassed nearly 4.5 acres on both the east and west sides of Collins Avenue.
The property included 350 feet of frontage along the Atlantic Ocean and 100 feet of frontage along Indian Creek Drive.
The east lot is improved with the former Seville Beach Hotel, a structure that was previously gutted in anticipation of a redevelopment program.
"Originally built in 1955, the Seville Beach Hotel was for many years a global playground for the rich and famous, and was considered one of the most prestigious hotels in Miami Beach," said de Zárraga.
"This was a rare opportunity to acquire a historically significant, trophy asset with diverse redevelopment potential."
"Real estate along South Beach rarely changes hands, with most of the properties considered to be generational assets," added Carlo. "The sale of a property of the Seville's prominence is unique.
"In addition, Miami Beach is woefully under-represented within the major hotel brands," Carlo adds.
"As a result, the Seville was highly attractive to a wide variety of investors, including a number of high-quality brands that could make their mark in Miami Beach and restore the Seville Beach Hotel to its rightful position as a leader in the South Beach lodging market."