Hersha Hospitality Trust, Philadelphia, agreed on Wednesday to buy the historic, 263-room Courtyard by Marriott Miami Beach Oceanfront hotel for US$95 million.
Included in the acquisition is the adjacent land parcel that has received approval from the Historic Preservation Board for the construction of an additional 93-room oceanfront tower, additional meeting space and structured parking. The oceanfront hotel, originally known as the Cadillac Hotel, was built in 1905 and is on the U.S. National Register of Historic Places.
Hersha plans to commence construction of this tower in 2012 and anticipates that the construction would be completed in late 2013 with an estimated cost of US$200,000 per room. Including estimated construction costs of this tower, the Hersha’s all-in per key cost for the 356-room hotel would be US$319,101.
“We are excited to expand our presence into one of the strongest lodging markets in the country with the acquisition of our first hotel in Miami,” said Hersha CEO Jay Shah. “With minimal new supply, multiple transient demand generators and the continued strength of international travel, we anticipate strong growth for this hotel and this market for the foreseeable future. Furthermore, with the opportunity to develop an additional all-suite oceanfront tower, this acquisition has the potential to become one of the premier hotel destinations in Miami.”