MIAMI BEACH A joint venture between Urgo Hotels and The Carlyle Group has acquired two hotels in Miami Beach.
The hotels are the 75-key Blue Moon Hotel and the 71-key Winterhaven Hotel, both located in the historic Art Deco District. The sale price is a combined US$26.7 million, or about US$183,000 per key.
Both properties are scheduled to undergo phased renovations over the next six months, including upgrades to the public spaces and all guestrooms. The food and beverage operations at both properties will be repositioned as signature restaurants, which will play a key role in upgrading the ambiance at the hotels. Once completed, the hotels will be brought to “like-new” condition in the 4-star segment, according to a statement from Bethesda, Maryland-based Urgo.
The acquisitions double Urgo’s Florida portfolio, marking the 11th and 12th additions in the past 18 months. “The Winterhaven and Blue Moon are irreplaceable properties and locations that we sourced off-market,” says principal Kevin Urgo. “This is our first joint-venture transaction with Carlyle, and we look forward to the opportunity to build on this new relationship.”
Urgo expects to continue its growth via additional joint ventures, third-party management deals and wholly-owned acquisitions. As for Carlyle, the joint venture with Urgo is consistent with its aggressive acquisition strategy emerging out of the downturn.
“We continue to have a keen interest in hotel acquisitions and in partnering with top operators like Urgo Hotels,” says Carlyle principal Thad Paul. “With more properties expected to come to market in the near term, our focus is on finding attractively priced, quality assets with repositioning and upside potential.”
The 72-year-old Winterhaven is located across the street from South Beach’s famed beachfront park and boasts significant historic Art Deco features, as well as a rooftop sundeck overlooking the ocean.
Listed on the National Register of Historic Places, The Blue Moon was developed by Merv Griffin. Also situated within the Art Deco District, the hotel includes a pool, an indoor/outdoor patio restaurant and a lounge.