MIAMI Pebblebrook Hotel Trust has acquired the 148-key Viceroy Miami hotel for US$36.5 million, or about US$247,000 per key.
The luxury hotel, located in downtown Miami in the Icon Brickell complex, will continue to be managed by Viceroy Hotel Group.
“We are pleased to be acquiring the Viceroy Miami at an extremely attractive price and furthering the geographic diversification of our growing portfolio,” says Pebblebrook CEO Jon Bortz. “Miami has historically performed very well in recovery cycles, and the distinctive quality and location of the Viceroy Miami creates a very strong investment opportunity for our company.
“The hotel benefits from its location within the Icon Brickell complex along Brickell Avenue, a high-end business district in Miami. This cosmopolitan area has redefined itself in recent years as the city’s work-play epicenter, with upscale residences, shops, restaurants, nightlife and entertainment, successfully creating a unique mix of corporate and leisure demand.”
The Miami metropolitan market has experienced unprecedented growth over the past two decades, benefitting from a healthy tourism industry that now attracts 38 million visitors annually from around the world, as well as the city’s strong connection to South America’s rapidly expanding business centers.
The Icon Brickell complex is a 10-acre urban development that consists of three towers, including Viceroy Tower, which includes both condominiums and the hotel. Brickell Avenue is sometimes nicknamed “Wall Street of the South” and contains a large concentration of international financial institutions, along with some of the area’s most vibrant and prominent restaurants, nightlife and residences.
Constructed in 2009, Viceroy Miami is designed by Kelly Wearstler and includes three food and beverage outlets, a 28,000-sq.-ft. spa and 4,000 sq. ft. of event space.
In 2010, its second year of operations, the hotel posted 68% occupancy and ADR of US$183. During the next 12 months, Pebblebrook forecasts that the hotel will generate EBITDA of US$2.4 million to US$2.7 million and net operating income after capital reserves of US$1.7 million to US$2 million.
Viceroy Miami marks the 13th acquisition for Pebblebrook, comprising more than US$1 billion of invested capital since its initial public offering in December 2009. The REIT has previously announced a signed agreement to purchase one other hotel, W Boston, for US$89.5 million.