One of the iconic hotels along Collins Avenue in Miami’s South Beach is getting a full facelift and, once completed, The Raleigh will become part of Rosewood Hotels & Resorts.
In order to help make the transformation happen, the property’s owner, SHVO has announce it has secured $190 million in new financing provided by BH3 Debt Opportunity Fund II, L.P. led by BH3 Management through its opportunistic credit platform, and facilitated by Walker & Dunlop’s New York Capital Markets team.
Now, with a total investment of approximately $1 billion, including a substantial equity contribution of over $300 million, the restoration and expansion of the hotel—in partnership with Deutsche Finance America and a group of German institutional pension funds—represents one of the single largest investments in Miami Beach.
The design, helmed by acclaimed architect Peter Marino in collaboration with Miami-based Kobi Karp Architecture, will feature a 60-suite full-service hotel managed by Rosewood Hotels & Resorts, a separate 17-story oceanfront tower with 42 Rosewood-branded residences and a private member’s club with high-end dining concepts.
The Raleigh Hotel was originally designed by Lawrence Murray Dixon and opened in 1940. By 1979, the hotel became listed on the National Register of Historic Places.
The hotel was purchased by the Brilla Group in 2009 for $30 million and sold again three years later to David Edelstein and Sam Nazarian for $55 million. In 2014, it was purchased by clothier Tommy Hilfiger’s Hilfiger Hospitality for $56.5 million and was later closed in 2017 after damage from Hurricane Irma prior to completion of renovations. In 2019, the hotel was sold to SHVO and Deutsche Finance America for a reported $103 million.
“As we proceed with our meticulous restoration of The Raleigh, we continue to be inspired by its legacy of elegance, glamour and sophistication,” said Michael Shvo, chairman and CEO of SHVO. “Our new financing will allow us to honor the historic significance of The Raleigh while ushering it into a new era of refined luxury, creating an unparalleled hospitality experience for generations to come.”
“BH3 is pleased to provide the financing for the first stage of construction for SHVO’s plan to restore and revive the iconic Raleigh property in Miami Beach,” said Gregory Freedman of BH3 Management. “Between SHVO’s track record of execution on other marquee luxury projects, the best-in-class team that has been assembled, including Rosewood and Peter Marino, and The Raleigh’s historic relevance and design, this will be a transformational project for Miami Beach.”
“This transaction underscores the reality that despite today’s challenging capital markets environment, liquidity remains readily available for proven sponsors determined to develop unique assets in established markets,” said Aaron Appel, senior managing director and co-head of the New York Capital Markets team at Walker & Dunlop. “The collaboration between SHVO, Peter Marino and Rosewood Hotels & Resorts ensures that upon delivery, The Raleigh will be a truly market-defining project and a welcome addition to the rapidly changing landscape of Miami Beach.”
Construction is reportedly “well underway,” with a targeted reopening in 2026.