MIAMI BEACH, FLORIDA Denihan Hospitality Group will manage the 409-key Royal Palm Hotel in Miami Beach, new owner Sunstone Hotel Investors says.
The hotel, which Sunstone acquired in August at foreclosure auction for US$117 million, is undergoing a complete renovation and repositioning effort. It is Denihan’s 14th managed property and its first outside of Chicago, New York City and Washington, D.C.
The announcement comes within Sunstone’s third quarter earnings report. The REIT posted quarterly RevPAR gains of 3.3% in the quarter and expects further increases of 5% to 7% in the fourth quarter. “While the current environment continues to produce quarter-to-quarter volatility in our results as evidenced in the third quarter, the longer-term fundamentals remain positive,” says President and CEO Art Buser. “Looking to the fourth quarter and into 2011, we are seeing strong booking trends, which we expect to result in a reacceleration of RevPAR growth. With third quarter occupancy of 73.5%, our hotels are well positioned to drive rate and maximize cash flow.”