Dive summary:
- SLS Brickell, a 124-room luxury lifestyle hotel located in Miami’s Brickell neighborhood, sold for $53.5 millionannounced JLL Hotels and Hospitality Group last week.
- Albanian conglomerate The Kastrati Group acquired the hotel from Constellation Hotels Holdings. The property opened in 2016 within the SLS mixed-use tower and features nearly 58,000 square feet of indoor and outdoor event space, multiple dining concepts and a rooftop pool and spa.
- According to JLL, the hotel has attracted significant investor interest, illustrating the positive long-term growth outlook for the Miami market. However, the market is expected to see a decline in hotel performance for the remainder of the year as local inflation increases and leisure travelers choose other, less expensive vacation destinations.
Dive Overview:
The SLS Brickell hotel was highly sought after by investors and garnered multiple offers, JLL Managing Director Andrew Dickey said in a statement. The strong interest reflects the “quality of the asset and its premier location within Brickell,” he said, adding that it also demonstrates investor confidence in Miami’s positive growth fundamentals.
Earlier this year, Melvin Chu, executive vice president of JLL’s Hotels & Hospitality Group, called Miami a Top 25 growing and performing marketsnoting that the city’s RevPAR exceeded 2019 performance by 24% at the end of 2022.
But by mid-2023, ADR and RevPAR has decreased Retail sales rose 4.3% and 2.3% respectively year-on-year, according to a study by real estate services firm Marcus & Millichap. The firm also predicted that the decline in growth would continue through the end of 2023, with a 6.8% decline year-on-year.
Marcus & Millichap based its forecast on an anticipated decline in tourism to Miami, exacerbated by rising local inflation.
However, travelers expressed a willingness to do crazy things This year, despite the uncertain economic climate, hotels continue to expand in Miami to meet demand from leisure travelers.
Current hotel projects include a luxury property on Brickell Key will be managed by Mandarin Oriental Hotel Group, a IHG hotel focused on well-being and the planned Hyatt Regency Miami.
